Conference of State Bank Supervisors Releases Artificial Intelligence Framework
A new supervisory framework has been prepared to help state financial institutions identify the use of artificial intelligence and manage risks.
The Conference of State Bank Supervisors has released a comprehensive supervisory framework to determine how financial institutions use artificial intelligence technologies and to manage potential risks.
Purpose of the Artificial Intelligence Supervisory Framework
The artificial intelligence framework published by the Conference of State Bank Supervisors on September 16, 2026, helps financial institutions identify the use of artificial intelligence.
The new framework aims to provide guidance to state financial regulators in order to assess and effectively manage related risks.
Legal Mandate Status and Scope
While this newly released framework does not directly impose any legal mandate, many state regulators are expected to incorporate it into their supervisory programs.
The framework in question is designed to cover state-chartered banks and state-licensed non-bank financial institutions.
Components and Risk Rating of the Framework
The framework consists of a Core Examiner Guide, non-bank addenda covering third-party oversight and consumer protection, and an artificial intelligence use case risk rating worksheet.
The worksheet divides artificial intelligence use cases into three distinct risk tiers based on consumer impact, human oversight, potential error harm, and data sensitivity.