Crypto
AI-Powered Cyber Defenses Come with Dual-Use Risks for Banks
Michelle W. Bowman, Federal Reserve Vice Chair for Supervision, spoke about AI's dual-use potential in improving cyber defenses while making it easier for attackers to identify weaknesses.
In remarks delivered at a Financial Stability Oversight Council roundtable on April 27, 2026, Bowman said that AI can accelerate the detection of vulnerabilities but also give malicious actors new ways to exploit them.
The technology, exemplified by Anthropic's Mythos, has both benefits and risks for cybersecurity. Bowman stated that regulators should keep their supervisory frameworks adaptable as AI systems change.