Federal Reserve Governor: The Fed Should Not Overregulate Banks' Adoption of New Technologies Like AI

Odaily Planet Daily News: Federal Reserve Governor Bowman stated that lenders have a better understanding of the risks associated with innovation and should be allowed to decide for themselves when to adopt new technologies like AI. Speaking at a conference on financial inclusion, Bowman said that when and how to innovate is up to each bank and its management, who know their customers, communities, and risk tolerance better than the Fed. Bowman also said the Fed should set clear expectations, remain transparent, and refrain from intervening in individual business decisions related to innovation. Bowman's remarks came as senior officials assess the impact of the rapid development of AI platforms, including Anthropic's new Mythos AI model. Earlier on Tuesday, Fed Governor Barr said at the same conference that while he welcomes the emergence of innovation, it remains unclear whether AI will reduce or exacerbate income and wealth inequality.