US Regulators Intensify Scrutiny of AI Use in Banking Sector

US banking regulators are intensifying their scrutiny of how banks employ artificial intelligence, focusing on data access and governance controls. Banks have rapidly adopted AI, expanding its use into areas like regulatory monitoring and credit assessment, which has drawn increased regulatory attention. Regulators are conducting thorough inspections to evaluate risks, including cybersecurity, and are examining how banks use third-party vendors and governance controls.