The Conference of State Bank Supervisors has released a new tool to help state examiners understand and assess risks from artificial intelligence at financial institutions.
The CSBS AI Supervisory Framework is an optional tool that state examiners can use to assess AI-related risks at state-chartered banks and state-licensed financial institutions, as well as determine when a deeper review may be appropriate, according to the organization. It is designed to consider each institution’s size, complexity, risk profile and use of AI
Financial institutions can also use the framework to assess their own AI programs, establish sound AI governance and risk management, and prepare for examinations, CSBS said.
Each state financial regulatory agency will determine the extent to which this framework is incorporated into its supervisory programs.
