Exclusive: U.S. bank regulators ramp up scrutiny of AI use at financial companies
Exclusive: U.S. bank regulators ramp up scrutiny of AI use at financial companies
Publish Date: 2026-06-12 05:05:00
Source Domain: www.reuters.com
- Regulators’ Focus on AI in Lending: U.S. banking regulators are enhancing their scrutiny on how banks use AI, particularly in lending, to address associated risks.
- Data Access and Governance Controls: Banks are being questioned about how they manage data access and maintain proper governance controls, emphasizing cybersecurity and fraud prevention.
- Third-Party Vendor Oversight: Regulators are probing banks on how they manage risks associated with third-party vendors and subcontractors providing AI tools, ensuring these vendors meet governance and security standards.
- Human Oversight and Contingency Plans: The use of “kill switches” and contingency plans for AI system failures are being scrutinized to ensure there’s proper human oversight and control mechanisms in place.
