In a speech delivered at an event hosted by the Financial Stability Oversight Council in Washington, D.C., Bowman said regulators must ensure safety and soundness without hindering innovation.
The Mythos AI model’s ability to detect cyber vulnerabilities can be used for enhancing cybersecurity or for malicious purposes, Bowman said.
“As we learn more about this tool and others to be released in the coming weeks and months, we will continue to consider effective supervisory approaches for these and other emerging capabilities,” Bowman said.
Bowman said that regulators’ supervision of emerging technologies requires keeping up with new developments, coordinating efforts across government, communicating developments and risks to supervised institutions, getting feedback from industry, and regularly refining supervisory approach and response.
“As we work to support innovation, it is necessary to determine whether our framework is appropriate,” Bowman said. “Have we established reasonable and effective supervisory expectations? Are bankers comfortable discussing emerging risks and new technologies with supervisory teams? Have we successfully implemented a pro-innovation mindset that allows responsible innovation and AI adoption to occur within the banking system?”
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Bowman said that the Financial Stability Board’s Standing Committee on Supervisory and Regulatory Cooperation, of which she is the chair, is working with the Treasury Department and the Securities and Exchange Commission (SEC) on a report that will cover sound practices for AI adoption, use and innovation. A draft is set to be released in the third quarter.
“The implications of AI extend far beyond the banking and financial systems,” Bowman said.
It was reported April 7 that Anthropic was allowing select partners to gain early access to Claude Mythos Preview, a model positioned for defensive cybersecurity work, so that they could identify vulnerabilities and strengthen systems before threats can be exploited.
Anthropic said at the time it was also discussing the model and its “offensive and defensive cyber capabilities” with government officials.
On April 10, a Treasury spokesperson told PYMNTS that Treasury Secretary Scott Bessent had convened a meeting with bank CEOs to address development in AI.
