Banking and business groups urge restraint on AI regulation, industry-led approaches to achieve security benefits

Federal officials should rely on existing banking sector regulation and risk management practices as they craft policies on artificial intelligence, which will also play an important role in confronting rapidly evolving cyber threats, the Bank Policy Institute says in comments drafted to inform an upcoming national AI strategy from the Biden administration.

“Existing banking regulations and guidance provide a comprehensive framework to manage the implementation of AI across various banking use cases. Banks are subject to extensive regulatory requirements, including...