OCC Speaks on AI in the Banking Sector

May 20, 2024

Artificial intelligence (AI) has significant potential benefits for banks, including improved efficiency, better risk management, and enhanced customer experience. However, poor third-party risk management can lead to negative consequences, such as hurting consumers, weakening banks, and creating an unlevel playing field. The OCC expects banks to approach the use of AI consistently with principles of safety, soundness, and fairness, and notes that while banks have generally approached machine learning prudently, they must be attentive to the risk of AI-enabled fraud.