GAO reports on AI oversight in the financial sector

Businesses that provide financial services—such as banks and credit unions—are using AI for various purposes, including improving customer service. Financial regulators are increasingly using AI for tasks like identifying risks to financial institutions and detecting insider trading or other illegal activity.

But AI technologies present both benefits and risks for businesses and consumers. For example, AI can improve customer service but could also lead to lending bias or cybersecurity risk.

The federal regulatory agency that supervises credit unions doesn’t have some key tools it needs to oversee AI use.

Read more at Government Accountability Office