On May 1, 2026, Federal Reserve Vice Chair for Supervision Michelle W. Bowman spoke at a Financial Stability Oversight Council roundtable on AI, cybersecurity, and risk management. Bowman highlighted that AI tools, such as Anthropic’s Mythos model that detects cyber vulnerabilities, can improve security but also pose new risks if misused. She explained that the Fed has been engaging banks for a decade to monitor AI use and has updated supervisory guidance to focus on material financial risk. The Fed’s recent amendment to model‑risk‑management guidance excludes generative or agentic AI, while third‑party risk guidance is being simplified. Bowman emphasized the need for balanced supervision that supports innovation and safety, and noted ongoing international cooperation through the Financial Stability Board to establish consistent AI expectations.
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