U.S. bank regulators are increasing oversight of how financial institutions use artificial intelligence, focusing on AI controls and related risk during routine examinations. Multiple outlets report that supervisors from the Office of the Comptroller of the Currency (OCC) and the Federal Reserve are asking banks detailed questions about their AI governance and internal protections.
According to the coverage, regulators examine how banks manage AI risks in core areas such as lending decisions, access to customer or client data, and the safeguards applied to that information. The reviews also address how banks oversee third-party vendors involved in AI systems, including the controls used to manage vendor and outsourcing risk.
One outlet notes that regulators include specific operational considerations in the questions, such as whether banks have the ability to halt or “kill” AI systems when necessary. The reported scrutiny is framed as part of standard supervisory processes rather than a single new enforcement action, and regulators are seeking information on banks’ governance frameworks, monitoring, and risk-management procedures around AI use.
