Bank Regulators Look to Existing Tools to Police AI Advances

Recent leaps in artificial intelligence technology have raised significant questions about fair lending, fraud detection, and cybersecurity at banks, but federal banking regulators already have the tools in place to deal with many of those issues, according to industry watchers.

While AI in the financial services sector isn’t entirely new, banks are eyeing OpenAI’s ChatGPT and similar large language models from Alphabet Inc. and Microsoft Corp. to handle everything from capital planning to money laundering reviews.

“In financial services, the momentum has been going up over the last few years. But the slope of the trajectory has ...