ANALYSIS: Bank AI Adoption Up Thanks to Quick Regulatory Shift

Late last year, I predicted that artificial intelligence-averse federal banking regulators would begin warming up to the technology this year—pretty much at the (traditionally slow) pace of regulatory change. Yet AI-skepticism has evaporated faster than I predicted, both in the administration, and in banks themselves.

The second Trump administration’s exceptionally speedy efforts to remake the regulatory status quo—particularly with regard to digital assets—have upended the Biden administration’s conservative approach to financial regulation. Yet while crypto has been dominating headlines, few concrete deregulatory steps have been taken with regard to banks and AI. Nevertheless, 10-K bank filings show that the Trump ...