Fed Speech · Bowman

What the statement says

Neutral (supervisory focus) — Bowman addresses responsible innovation and AI in banking, with no monetary policy content

• Pro-innovation regulatory stance: Bowman states the regulator's role is to 'set clear expectations, be transparent, and not micromanage individual business decisions'; timing and method of innovation rest with each bank and its management
• AI promise and risk: She notes AI 'holds real promise for expanding access' to credit, but uses with direct impact on credit decisions 'present more substantial legal compliance challenges than other AI use cases'
• Calibrated supervision: Lower-risk AI uses should receive 'an appropriately calibrated supervisory and regulatory touch'; smaller banks lack resources of larger peers but still need to innovate, and supervisory guidance 'should not hinder access to and the implementation of innovation'
• FSB AI report out for comment: As chair of the FSB's Standing Committee on Supervisory and Regulatory Cooperation, Bowman highlights the FSB's report on 'Sound Practices for Responsible Adoption of AI,' with public comment through July 22, offering adaptable guidance rather than one-size-fits-all requirements
• Against over-regulation: She warns that 'unnecessary complexity or prescriptive requirements' risk 'limiting the very innovation that can expand access,' advocating supervision focused on material risks

AI-generated summary of the official text. The official statement is authoritative. Not investment advice.