The Conference of State Bank Supervisors released a new supervisory framework on September 16, providing state examiners with a discretionary tool to identify and understand AI at financial institutions, assess associated risks, and determine when a deeper review may be appropriate. The framework is based on NIST’s AI Risk Management Framework, the Cyber Risk Institute’s Financial Services AI Risk Management Framework, and Treasury’s AI Lexicon. It is designed to consider each institution’s size, complexity, risk profile, and use of AI.
What you should do: If your bank is using AI for fraud detection, customer service, underwriting, or any other purpose, ensure you have governance and oversight in place. Document how AI-enabled tools are validated, monitored, and challenged. The CSBS framework provides a useful checklist for self-assessment before your next exam.
Official framework: https://www.csbs.org/csbs-artificial-intelligence-supervisory-framework
CSBS announcement: https://www.csbs.org/newsroom/csbs-announces-ai-supervisory-framework