The Department of the Treasury has revealed in a new report that financial institutions are increasing their adoption and use of artificial intelligence systems, including generative AI models, for cybersecurity and fraud detection, and are managing their use of the emerging technology by providing guardrails and developing internal policies.
In the report, Treasury’s Office of Cybersecurity and Critical Infrastructure Protection, or OCCIP, outlined a series of steps that financial institutions can AI-related operational risk, cybersecurity and fraud challenges in the financial sector, including addressing a widening gap between large and small institutions when it comes to their use of in-house AI systems.
The OCCIP also highlighted the need to narrow the fraud data divide, address regulatory fragmentation, expand the National Institute of Standards and Technology’s AI Risk Management Framework, close gaps in human capital and develop a common AI lexicon.
“Treasury’s AI report builds on our successful public-private partnership for secure cloud adoption and lays out a clear vision for how financial institutions can safely map out their business lines and disrupt rapidly evolving AI-driven fraud,” said Nellie Liang, undersecretary of the Treasury for domestic finance.
The OCCIP developed the report in response to the October 2023 executive order on the safe, secure and trustworthy development and use of AI technologies.
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