Fed Warns Banks of AI's Double-Edged Threat

Michelle Bowman, Vice Chair for Supervision at the Federal Reserve, cautioned banks to bolster their defenses against artificial intelligence threats. In prepared remarks delivered on September 29, 2026, Bowman emphasized that AI can both benefit and harm lenders.

Bowman stated that 'AI offers great potential, both to threat actors and those buttressing their defenses to those threats.' She also noted that AI is becoming an essential component of security measures as a defensive tool and evolving risk.