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00:02U.S. banking regulators are intensifying their oversight of artificial intelligence
00:07as lenders expand its use, according to Reuters.
00:11Banks have expanded AI use beyond virtual assistance
00:14into complex functions like regulatory monitoring and credit underwriting,
00:19prompting increased regulatory scrutiny.
00:21Regulators are increasing oversight of AI and financial services
00:25to better understand its deployment
00:27and address growing cybersecurity and fraud risks.
00:31The Office of the Comptroller of the Currency and the Federal Reserve
00:34have begun asking banks in routine examinations
00:37to map out their AI deployments, probe vendor relationships,
00:41safeguard client data, and demonstrate controls such as kill switches.
00:45Authorities are not yet issuing prescriptive rules,
00:48instead relying on existing model risk management
00:50and consumer protection frameworks
00:52while gathering information on industry practices.
00:54For all things money, visit Benzinga.com.
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