AI Is New but Not Immune From Old Rules, Bank Regulators Say (The Wall Street Journal)

The Wall Street Journal, June 3, 2022

AI Is New but Not Immune From Old Rules, Bank Regulators Say

Financial institutions’ use of artificial intelligence should have risk controls in place to address possible drawbacks, senior bank regulators said, warning that old rules could be applied to the novel technology. Even without AI-specific guidance from federal bank regulators, institutions could run afoul of existing rules, officials at the Federal Reserve Board of Governors and Office of the Comptroller of the Currency said Friday. ‘There’s a lot of existing guidance,’ Kevin Greenfield, the deputy comptroller for operational risk policy at the OCC, said at a panel discussion hosted by the New York City Bar Association. ‘It doesn’t need to be AI-labeled to be applicable.’

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