The Office of the Financial Stability Oversight Council and the U.S. Treasury Department’s Artificial Intelligence Transformation Office recently launched a public-private initiative that will support the continued strength and resilience of the U.S. financial system in an era of accelerating technological change.
The AI Innovation Series will feature four roundtables with financial institutions, technology firms, regulators, and specialized experts. The discussions will identify practical approaches to scaling innovation while preserving safety and soundness and explore the highest-value AI use cases.
“Economic security – the condition of having secure and resilient domestic production capacity – is core to financial stability, and leadership in AI adoption is a crucial component of economic security,” U.S. Treasury Secretary Scott Bessent said. “We are optimizing regulation to support growth for both Main Street and Wall Street: moving from a posture focused on constraint toward one that recognizes failure to adopt productivity-enhancing technology as its own risk. The Treasury department will continue evaluating regulatory frameworks and enforcement policies to enable the U.S. financial sector’s leadership in AI adoption while preserving national security and long-term economic resilience.”
Financial institutions use artificial intelligence for service functions such as credit underwriting, cybersecurity, fraud detection and operational risk management. Regulators and institutions must ensure that governance, supervisory approaches and market practices evolve alongside technological capability, the departments said.