Use of artificial intelligence (AI) tools is being considered by the regulator of national banks to enhance its monitoring of risks in the banking system, a top official at the agency told a congressional task force Friday.
In a hearing before the House Financial Services Committee’s task force on artificial intelligence, Kevin Greenfield, deputy comptroller of the currency for operational risk policy, said work is underway to materially upgrade the Office of the Comptroller of the Currency’s (OCC) core supervision systems. Use of AI is one of those areas being considered during the upgrade, he said.
“Just as banks are using increasingly sophisticated technologies and tools to enhance bank capabilities, the OCC is similarly engaged in assessing how innovative technologies can strengthen our supervisory processes,” he said, adding that the agency already “employs a number of analytical and technology tools to support bank supervision.”
In his written remarks to the task force, Greenfield said his agency supports continuing efforts by national banks and federal savings associations to explore safe and sound uses of AI. But, he added a caveat.
“While AI opens opportunities and can provide many benefits, we are also mindful of the challenges and risks associated with AI applications and services that we expect our regulated institutions to address,” he said. “The OCC will continue to conduct robust, risk-based supervision, monitor the industry, and research efforts to keep pace with changes in AI use in the financial sector.”