Fed Governor Bowman said lenders understand innovation risks better and should
be allowed to decide when to adopt AI and other new technologies. Speaking at a
financial inclusion conference, Bowman said, "When and how to innovate is up to
each bank and its management; they know their customers, communities and risk
tolerance better than we do." He added the Fed should "set clear expectations,
be transparent and refrain from intervening in individual business decisions
related to innovation." Bowman’s remarks come as officials assess rapid AI
developments, including Anthropic’s new Mythos model. Earlier at the same event,
Fed Governor Barr said it remains unclear whether AI will reduce or exacerbate
income and wealth inequality.
