Federal Reserve Governor Bowman: The Fed should not overly interfere with banks on new technologies such as artificial intelligence

ME AI message, U.S. Federal Reserve Governor Bowman said that lenders understand the risks brought by innovation better and should be allowed to decide for themselves when to adopt new technologies such as artificial intelligence. Speaking at a meeting on financial inclusion, Bowman said, “When and how to innovate depends on each bank and its management. They know their own customers, communities, and risk tolerance better than we do.” Bowman also said the Federal Reserve should “set clear expectations, remain transparent, and not interfere with individual business decisions related to innovation.”

Bowman’s remarks come as senior officials are assessing the impact of the rapid development of AI platforms, including Anthropic’s newly launched Mythos AI model. Earlier on Tuesday, Federal Reserve Governor Bair said at the same meeting that while he welcomes innovation, it is still unclear whether AI will reduce or worsen income and wealth inequality. (Source: Jin Ten)