U.S. Regulators Intensify Scrutiny of AI in Finance and Tech

U.S. government agencies have increased scrutiny of artificial intelligence across the financial and technology sectors, focusing on risk management and market power. The Federal Reserve System and the Office of the Comptroller of the Currency are using routine examinations to require banks to map AI usage in high-risk areas, including credit underwriting, sanctions screening, and know-your-customer checks. Regulators are specifically evaluating governance frameworks, such as human oversight, the implementation of kill switches, and vulnerabilities introduced by third-party vendors.

While agencies are currently applying existing risk-management and consumer protection frameworks to avoid lagging behind rapid technological evolution, some officials question the longevity of this approach. Federal Reserve Vice Chair Michelle Bowman suggested that current supervisory guidance may be insufficient for the future of the technology, noting that banks currently rely on existing frameworks to guide AI use.

Parallel to financial oversight, the Federal Trade Commission and the United States Department of Justice are investigating AI partnerships. These agencies are examining whether collaborations between dominant firms create structural power or industry consolidation, with a particular focus on exclusivity provisions in data-sharing and cloud agreements.