Fed’s Barr Calls for Guardrails as Financial Sector Adopts AI

Federal Reserve Governor Michael Barr said there needs to be clear guardrails to prevent risks as the financial sector looks to adopt artificial intelligence in its core functions.

Regulators need to get the balance right between innovation and stability to ensure that AI boosts growth and productivity over the long-term, Barr said at the Singapore FinTech Festival on Wednesday.

“Speaking only about the United States, I worry that we are going to let that pendulum swing too far and lower our guardrails in a way that opens us up to too much risk,” he said in a panel with several ...