Fed Governor Waller: Fed is cautiously advancing the system-wide application of AI technology

Odaily News: Federal Reserve Governor Waller stated that the Fed 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, "this means setting clear limits on how and where it is used, strong 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 taking a more unified approach to implementing AI technology. Waller did not comment on the economic and monetary policy outlook in his prepared remarks. (Jin10)