Fed Governor Bowman: Fed Should Not Overly Intervene in Banks Regarding New Technologies like AI

On July 15, Federal Reserve Governor Bowman stated that lending institutions have a better understanding of the risks associated with innovation and should be allowed to decide when to adopt new technologies such as artificial intelligence. Speaking at a conference on financial inclusion, Bowman said, "When and how to innovate depends on each bank and its management. They know their customers, communities, and risk tolerance better than we do." Bowman also emphasized that the Fed should "set clear expectations, maintain transparency, and not interfere with individual business decisions related to innovation." His comments come as senior officials are assessing the impacts of the rapid development of AI platforms, including the new Mythos AI model launched by Anthropic. Earlier on Tuesday, Fed Vice Chair Barr remarked at the same conference that while he welcomes the emergence of innovation, it remains unclear whether AI will reduce or exacerbate income and wealth inequality.