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2026-07-15 04:24:11
Michelle Bowman, Vice Chair of the Federal Reserve responsible for supervision, pointed out that regulation of fields such as artificial intelligence should not adopt a "micromanagement" approach towards banks. Bowman stated that banks themselves have a clearer understanding of the risks that come with innovation, and the timing of introducing new technologies like AI should be a decision made independently by the banks. "Choosing when and how to innovate is within the purview of each bank and its management," Bowman noted in prepared remarks at a conference on financial inclusion. "Compared to regulators, banks are more familiar with their customer base, the communities they serve, and their own risk tolerance." The Fed's highest-ranking banking regulator also emphasized that the Fed's focus should be on establishing clear regulatory expectations for financial innovation and maintaining the transparency of regulatory rules, rather than excessively interfering in banks' specific business decisions. Bowman's views come against the backdrop of senior financial regulators continuously assessing the various impacts of the rapid development of AI platforms, including the potential industry effects of emerging technologies such as Anthropic PBC's newly launched Mythos AI model.
