Hoosier Banker 51 * bit.ly/AIJointStatement lished controls or contracting with external vendors to conduct robust third-party risk management. The use of AI technologies within financial institutions has captured the interest of regulators and policymakers alike. A couple of key concerns are always the safety and soundness of financial institutions and consumer protections. While AI constantly grows and advances, many banking laws and regulations currently on the books are still behind the times, leaving some areas of regulatory uncertainty. Nevertheless, regulators acknowledge the benefits of AI and support responsible innovation. In 2021, the Consumer Financial Protection Bureau, Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation and Federal Reserve Board issued requests for information regarding the use of artificial intelligence by financial institutions. In 2022, the OCC issued supervisory expectations for how banks should manage risks associated with AI. Most recently, an April 2023 joint statement* was issued by the agencies on enforcement efforts against discrimination and bias in automated systems. The statement outlines some of the challenges of AI and serves as a reminder that banks must embrace responsible innovation. Conclusion For banks to thrive and remain relevant, they must continue to be forward-thinking and responsible in their innovation efforts. Artificial intelligence is an ever-evolving technology and convenience of our world. Financial institutions must engage in the balancing act of supporting new and innovative technologies for their consumers, while also acknowledging the managing of risks and challenges of such growth. It is imperative to fully understand the technologies that our institutions rely on for their operation and that we remain abreast of any issues arising in the regulatory world. Artificial intelligence is the future and it’s filled with risks and rewards. HB Meet face-to-face with Indiana lawmakers to discuss issues of the day. Click on the icon in HB Digital for more information, or go to: indiana.bank/calendar. Legislative Briefing and Reception Indianapolis JANUARY 23 ;-um _o 07];ঞm] =ou |orŊঞ;u vrrou| -m7 ]b7-m1; 1-m v-; ou ruo]u-l lom;ĺ That’s Bankers Alliance. bm=oŠ0-mh;uv-ѴѴb-m1;ĺou] ou ŐѶƒƒő ѵѶƒŊƏƕƏƐĺ Holding Company of Compliance Alliance and Review Alliance With a core ownership group of 35 state bankers associations, B/A has confidence in the programs we’re offering today and tomorrow. Indiana Bankers Association is a Bankers Alliance owner.
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