US bank regulator issues first-ever AI guidance for examiners
XLF•The Office of the Comptroller of the Currency issued its first-ever guidance for examiners reviewing banks’ use of AI. It says examiners should assess the consequences of potential AI-driven mistakes and the lender’s use and complexity, not treat AI as a unique risk.
1. Guidance for examiners
The Office of the Comptroller of the Currency issued guidance on how examiners should probe banks’ AI use. The document says banks are not expected to establish separate risk parameters for AI and examiners should not treat the technology as a unique risk.
2. Assessing AI risks
Examiners should consider how a lender uses AI and the lender’s size and complexity, and focus on the consequences of potential mistakes rather than the sophistication of a model. The OCC said a simple AI agent authorized to initiate transactions could be riskier than a sophisticated model used internally; higher-risk uses may require tighter limits on autonomy or more direct human oversight. The guidance is not legally binding, though banks typically comply closely with such guidance.
