The Conference of State Bank Supervisors this week released a supervisory resource to support state examiners in assessing the use and risks of artificial intelligence at state-chartered banks and state-licensed nonbank financial institutions.
Details: CSBS said the framework:
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Helps provide clarity to regulated financial institutions on the general approach, types of questions, and the information that a state examiner may request regarding the institution’s AI-based products, services, and tools.
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Provides state examiners with a discretionary tool to identify and understand AI at financial institutions, assess associated risks, and determine when a deeper review may be appropriate using existing supervisory resources.
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Is designed to consider each institution’s size, complexity, risk profile, and use of AI.
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Is based on AI risk management resources from the National Institute of Standards and Technology’s AI Risk Management Framework, the Cyber Risk Institute’s Financial Services AI Risk Management Framework, and the Treasury Department’s AI Lexicon.