Fed Governor Waller: Fed Cautiously Advancing System-Wide Application of AI Technology

Odaily Fed Governor Waller stated that the Federal Reserve is cautiously advancing the adoption of artificial intelligence technology on a system-wide basis. Waller said at a conference held by the Federal Reserve Bank of Boston, "We cannot be casual about AI, and as a central bank, we hold ourselves to a high standard in using this technology." He stated that for the Fed's use of AI, "it means setting clear limits on how and where it is used, robust information security controls, rigorous model validation, human accountability for decisions, and ongoing evaluation as the technology evolves. Innovation and risk management are parallel and complementary priorities." Although the Fed is a highly decentralized organization, it is adopting a more unified approach to implementing AI technology. Waller did not comment on the economic and monetary policy outlook in his prepared remarks. (Jin10)