Fed’s Bowman says regulators shouldn’t rush to rein in AI

Governor of the Federal Reserve System Michelle Bowman acknowledged the risks posed by artificial intelligence, but warned that regulators should also be careful not to limit the development of useful technologies.

“We don’t need to rush regulation,” Bowman said in prepared text for a speech she plans to give Friday in Washington. “An overly conservative approach to regulation could distort the competitive landscape, pushing activities outside the regulated banking system or preventing the use of AI altogether.”