WASHINGTON — The Office of the Financial Stability Oversight Council (FSOC) and the Treasury Department’s Artificial Intelligence Transformation Office (AITO) launched the AI Innovation Series this week, a public-private initiative to support the continued strength and resilience of the U.S. financial system in an era of accelerating technological change.
Artificial intelligence is increasingly embedded in core financial services functions – from fraud detection and cybersecurity to credit underwriting and operational risk management. As adoption accelerates, regulators and institutions must ensure that governance, supervisory approaches, and market practices evolve alongside technological capability.
“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,” said U.S. Treasury Secretary Scott Bessent. “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.”
Over four roundtables, the AI Innovation Series will convene financial institutions, technology firms, regulators, and specialized experts to explore the highest-value AI use cases and identify practical approaches to scaling innovation while preserving safety and soundness.
“AI adoption is not merely a question of technological modernization—it is critical to America’s financial stability and a precondition to economic growth,” said Deputy Assistant Secretary for FSOC Christina Skinner. “When institutions cannot deploy tools that improve fraud detection, credit allocation, and operational resilience, the system becomes less efficient and less secure.”
“AI is moving from experimentation to enterprise-wide integration, and disciplined implementation will determine its impact,” said Paras Malik, Treasury’s Chief AI Officer and Counselor to the Secretary. “The priority now is on operationalization, embedding AI into core workflows in ways that measurably enhance risk management and resilience. 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.”
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