The Office of the Financial Stability Oversight Council and the Treasury Department’s Artificial Intelligence Transformation Office launched the AI Innovation Series this week, according to a Mar. 23 announcement. The initiative is a public-private effort aimed at supporting the strength and resilience of the U.S. financial system as artificial intelligence becomes more widely used in core financial services.
Artificial intelligence is now present in many aspects of finance, including fraud detection, cybersecurity, credit underwriting, and operational risk management. As these technologies become more common, both regulators and institutions face new challenges in adapting governance and supervisory approaches to keep pace with rapid technological changes.
U.S. Treasury Secretary Scott Bessent said, “Economic security – the condition of having secure and resilient domestic production capacity – is core to financial stability, and leadership in AI adoption is a crucial component of economic security.” Bessent added that regulation must evolve: “We are optimizing regulation to support growth for both Main Street and Wall Street: moving from a posture focused on constraint toward one that recognizes failure to adopt productivity-enhancing technology as its own risk. The Treasury Department will continue evaluating regulatory frameworks and enforcement policies to enable the U.S. financial sector’s leadership in AI adoption while preserving national security and long-term economic resilience.”
The series will include four roundtables where representatives from financial institutions, technology companies, regulators, and experts will discuss high-value uses for artificial intelligence in finance. These discussions aim to find practical ways for innovation while maintaining safety standards.
Deputy Assistant Secretary for FSOC Christina Skinner said, “AI adoption is not merely a question of technological modernization—it is critical to America’s financial stability and a precondition to economic growth.” She continued: “When institutions cannot deploy tools that improve fraud detection, credit allocation, and operational resilience, the system becomes less efficient and less secure.”
Paras Malik, Treasury’s Chief AI Officer and Counselor to the Secretary said,“AI is moving from experimentation to enterprise-wide integration, and disciplined implementation will determine its impact.” Malik explained that embedding artificial intelligence into workflows can enhance risk management across markets: “Through the Innovation Series we are convening regulators and industry leaders to ensure governance frameworks evolve alongside deployment and remain fit for purpose as AI becomes embedded across financial markets.”
The launch signals an ongoing effort by federal agencies to guide responsible use of emerging technologies within American finance.
