Banking group warns against ‘risk-aversion’ in regulators’ approach to AI adoption

The Bank Policy Institute says banking regulators must “actively encourage” the use of artificial intelligence -- and consider the risks from failing to embrace the technology -- in comments on AI-related regulatory reform to the White House Office of Science and Technology Policy.

“BPI’s recommended approach requires a fundamental shift that accounts for the risk of inaction when overseeing AI adoption, recognizing that failure to update banks’ toolkits in fraud detection, illicit finance prevention and cybersecurity can pose equal or...