By Pete Schroeder
THE Office of the Comptroller of the Currency (OCC), which oversees large US national banks, has issued a new supervisory framework for the deployment of AI.
It said that big bank supervisors should monitor how lenders use artificial intelligence. but should not treat it as distinct from other risks. The guidance comes as authorities globally ramp up their efforts to contain AI-driven risks.
The OCC issued what it said was the first-ever guidance for how examiners should probe banks’ AI usage, according to a copy of the document.
Under the new framework, first reported by Reuters, the OCC says banks are not expected to establish separate risk parameters for AI use and examiners should not treat the technology as a unique risk. But examiners should consider the way a lender is using AI, as well as the size and complexity of the lender.
While the document is not legally binding like a rule, banks typically comply closely with such guidance.
Banking regulators worldwide have been querying lenders about their AI use, worried the technology poses major cybersecurity and potentially financial stability risks. In the US, regulators have been asking banks about their use of advanced AI models, what limits banks place on those systems and how they monitor them, Reuters previously reported.
The OCC said its examiners should focus on the consequences of potential AI-driven mistakes at banks rather than the sophistication of particular models they’re using.
For example, it said that higher-risk uses of AI may require greater restrictions on autonomy or more direct human oversight, the document said.
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