WASHINGTON, D.C. — The U.S. Department of the Treasury said financial regulators and industry leaders are seeking clearer rules for artificial intelligence as banks and other financial firms move from experimenting with the technology to deploying it across critical operations.
The Treasury Department’s Office of the Financial Stability Oversight Council and its Artificial Intelligence Transformation Office concluded the fourth and final session of the agency’s AI Innovation Series on May 19, a public-private initiative examining how AI could reshape the financial system.
The discussions come as policymakers increasingly view artificial intelligence as both an economic opportunity and a potential source of financial stability risks if regulatory frameworks fail to keep pace with technological change.
“The global economy is undergoing a period of rapid transformation with breakthrough advances in AI,” Treasury Secretary Scott Bessent said in a statement. “Countries that deploy this technology most effectively will shape the next era of growth.”
According to Treasury, participants from financial institutions, technology firms and regulatory agencies highlighted AI’s potential to improve productivity, strengthen cybersecurity defenses and combat financial crime. They also warned that outdated regulatory frameworks could discourage innovation and leave financial institutions less competitive.
“In the financial services sector, regulatory frameworks built for a different era can result in a reluctance to innovate, and that reluctance in itself can become a source of financial stability risk,” said Christina Skinner, deputy assistant secretary for FSOC.
Treasury Chief AI Officer Paras Malik said the industry has largely moved beyond developing AI strategies and is now focused on implementing the technology at scale.
“The challenge is no longer defining AI strategies—it is operationalizing them at scale,” Malik said, adding that maintaining trust, resilience and governance will be critical as AI becomes more deeply embedded in financial services.
Roundtable participants called for greater regulatory clarity and harmonization while urging continued collaboration between government and the private sector to support responsible AI adoption.
The AI Innovation Series was launched as part of Treasury’s implementation of Executive Order 14179, “Removing Barriers to American Leadership in Artificial Intelligence,” and the administration’s broader AI Action Plan.
The initiative consisted of four roundtables held between March and May that focused on AI governance, productivity and efficiency, cybersecurity and risk management, and the technology’s implications for financial stability and economic security.
Treasury said it plans to continue engaging with industry and regulators as AI adoption accelerates and its impact on the financial system becomes more pronounced.
Support the local news that supports Chester County. MyChesCo delivers reliable, fact-based reporting and essential community resources—free for everyone. If you value that, click here to become a patron today.