Fed’s Bowman Touts AI Benefits, Risks for Bank Cybersecurity

Federal Reserve Vice Chair for Supervision Michelle Bowman warned banks on Sept. 29 to buffer their systems against artificial intelligence threats while emphasizing the technology can benefit lenders.

“AI offers great potential — both to threat actors and those buttressing their defenses to those threats,” Bowman said in prepared remarks for an event in Colorado.

Bowman previously said the Fed should “not micromanage” banks on issues like AI as US officials weigh the impact of the rapidly evolving technology.

The Fed’s top bank cop also said although cybersecurity requires proactive risk management by bank boards of directors and senior management, regulators recognize that preparing for such threats can be burdensome and challenging for community banks.

Photo: Michelle Bowman, vice chair for supervision at the US Federal Reserve.