U.S. Department of the Treasury releases an AI Lexicon and Financial Services AI Risk Management Framework

The U.S. Department of the Treasury published two resources to guide artificial intelligence (AI) use in the financial sector: a shared Artificial Intelligence Lexicon and the Financial Services AI Risk Management Framework (FS AI RMF). The publications support implementation of the President’s AI Action Plan by promoting common standards, shared understanding and risk-based governance for AI deployment in financial services. The AI Lexicon establishes common definitions for key AI concepts, capabilities and risk categories to improve communication across regulatory, technical, legal and business functions and support more consistent supervision and implementation. The FS AI RMF adapts the National Institute of Standards and Technology’s AI Risk Management Framework to financial services operational, regulatory and consumer protection considerations, providing tools and reference materials to evaluate AI use cases, manage risks across the AI lifecycle and embed accountability, transparency and resilience, with a design intended to be scalable across institutions of different size and complexity. Development was carried out through the Financial and Banking Information Infrastructure Committee and the Financial Services Sector Coordinating Council’s Artificial Intelligence Executive Oversight Group. Treasury positioned the documents as part of a broader series of deliverables from the Artificial Intelligence Executive Oversight Group addressing areas including identity, fraud, explainability and data practices, and indicated it will continue work with federal and state regulators and industry stakeholders to advance the AI Action Plan.