FINANCE BRIEFING: Bank Regulators Look to Police AI Advances

Leaps in AI technology are raising questions about fair lending, fraud detection, and cybersecurity at banks, but federal banking regulators already have tools in place to deal with those issues, industry watchers say.

While AI in the financial services sector isn’t new, banks are eyeing OpenAI’s ChatGPT and similar large language models from Alphabet and Microsoft 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 changed,” said Sameer Gupta, the leader of Ernst & Young’s North America Financial ...