In its Fall 2023 "Semiannual Risk Perspective," the US Office of the Comptroller of the Currency (OCC) reports that the overall strength of the federal banking system remains robust, but cautioned to remain vigilant and adhere to prudent risk management practices. Therein, the OCC identifies AI as an emerging area of risk and opportunity for banks and the financial system as a whole.
"Developments in the technology may reduce costs and increase efficiencies; improve products, services, and performance; strengthen risk management and controls; and expand access to credit and other banking services," the OCC writes. "Widespread adoption of AI, however, may also present significant challenges relating to compliance risk, credit risk, reputation risk, and operational risk."
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