Artificial Intelligence Supervisory Framework Released for State Examiners

The Conference of State Bank Supervisors has prepared a new supervisory framework to help supervised institutions understand their use of artificial intelligence and evaluate the risks.

Scope and Purpose of the Framework

The Conference of State Bank Supervisors has released a new artificial intelligence supervisory framework to examine the use of artificial intelligence by supervised bank and non-bank institutions. This framework allows state examiners to identify risks and determine situations that require deeper investigation.

Resources Used and Structure

The new supervisory framework draws upon existing resources such as the NIST Artificial Intelligence Risk Management Framework, the Cyber Risk Institute Financial Services Artificial Intelligence Risk Management Framework, and the U.S. Department of the Treasury Artificial Intelligence Glossary. The guidance program consists of components such as third-party risk and consumer protection appendices.

Implementation and Approval Process

Approved in August, the framework was accepted by the state supervisory processes committees. Each state financial regulatory agency will independently determine the extent to which it will incorporate this framework into its examination program.