Reuters reported on Friday, June 12, citing unnamed sources, that banking regulators have started asking banks about their use of artificial intelligence during routine bank examinations.
Supervisors from the Office of the Comptroller of the Currency and the Federal Reserve are asking detailed questions about banks’ controls, protection of customer data, governance framework, third-party risks, vendor oversight, subcontractor exposure, and contingency plans in the event of an AI-related failure, according to the report.
Key areas of concern include whether AI systems can access data or make inferences beyond authorized limits, whether banks can shut down systems if necessary, and whether the bank’s vendors and vendor subcontractors are held to the same governance and security standards as the bank, the report said.
The Fed declined to comment on the report when contacted by PYMNTS.
The OCC did not immediately respond to PYMNTS’ request for comment.
Reuters reports that the supervisory questions are aimed solely at improving the regulator’s understanding of how banks are using AI.
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The report also highlighted public statements from federal agencies that suggest regulators are considering banks’ use of AI.
In May 2025, the Government Accountability Office (GAO) announced that it had received a report from regulators that it was conducting an inspection focused on AI.
“Federal financial regulators primarily rely on existing laws, regulations, guidance, and risk-based examinations to oversee AI,” GAO said in a report on the technology. “However, some regulators have issued AI-specific guidance or conducted AI-focused examinations, such as on the use of AI in lending. Regulators have told GAO that they continue to assess AI risks and may refine guidance and update regulations to address emerging vulnerabilities.”
The OCC said in April that the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) “plan to issue requests for information in the near future that address model risk management generally and specifically consider banks’ use of AI, including generative AI, agent AI, and AI-based models.”
PYMNTS reported on June 2 that Nvidia found that nearly 90% of financial institutions have implemented or evaluated AI, and 65% are already using the technology.
KPMG found that 70% of bank CEOs plan to allocate 10% to 20% of their budgets to AI next year.
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