Federal Reserve Vice Chairman Michelle Bauman said that banks are more aware of the risks associated with innovation and should decide for themselves when to adopt new technologies such as artificial intelligence. “The decision on when and how to innovate is in the hands of each bank and its management,” Bauman said in a statement prepared in advance for the Financial Inclusion Conference. “They know their customers, communities, and risk appetite better than we do.” The Federal Reserve's top bank supervisor also said that the Federal Reserve should set clear expectations and maintain transparency around innovation, rather than micromanage individual business decisions. When Bauman made these remarks, senior officials have been weighing the impact of the rapid development of AI platforms, including Anthropic PBC's new Mythos AI model.

Federal Reserve Vice Chairman Michelle Bauman said that banks are more aware of the risks associated with innovation and should decide for themselves when to adopt new technologies such as artificial intelligence. “The decision on when and how to innovate is in the hands of each bank and its management,” Bauman said in a statement prepared in advance for the Financial Inclusion Conference. “They know their customers, communities, and risk appetite better than we do.” The Federal Reserve's top bank supervisor also said that the Federal Reserve should set clear expectations and maintain transparency around innovation, rather than micromanage individual business decisions. When Bauman made these remarks, senior officials have been weighing the impact of the rapid development of AI platforms, including Anthropic PBC's new Mythos AI model.