U.S. Department of the Treasury concludes AI Innovation Series with calls for clearer and more adaptive AI regulation

The U.S. Department of the Treasury announced that its Office of the Financial Stability Oversight Council and Artificial Intelligence Transformation Office held the fourth and final roundtable in the AI Innovation Series, closing a public-private discussion on how artificial intelligence is being deployed in financial services. The main message from the series was that AI adoption is moving from experimentation to implementation, with participants identifying benefits for productivity, cybersecurity, fraud prevention and financial crime controls, while also stressing that governance and regulatory frameworks need to evolve alongside the technology. The four roundtables ran from March through May and covered AI strategy and governance, value generation and efficiency, cybersecurity and risk management, and financial stability and economic security. Participants from financial institutions, technology firms and regulatory bodies pointed to regulatory impediments to adoption and called for greater regulatory clarity, harmonization and continued public-private engagement to support responsible innovation without compromising safety and soundness. Treasury said insights from the series will inform its and FSOC’s ongoing policy work under Executive Order 14179 and the administration’s AI Action Plan. It also said it will continue engaging with industry, regulators and technology leaders on how AI capabilities are being deployed and what they mean for the financial system.