What happened
The Office of the Comptroller of the Currency (OCC) has issued a supervisory framework designed to support the regulator’s examiners when they evaluate banks’ use of artificial intelligence and agentic AI in normal course business activities. The framework does not establish supervisory expectations for banks, does not set forth enforceable standards or prescriptive requirements, and is not meant to be used by banks to assess their use of Super Intelligence (SI) or their SI risk management.
The OCC has issued a supervisory framework to support examiners in evaluating banks' use of AI and agentic AI.
The framework does not establish supervisory expectations for banks, nor does it set forth enforceable standards or prescriptive requirements.
The OCC encourages banks to conduct their activities in a safe and sound manner, whether using traditional methods or novel technologies.
Examiners may use the framework to identify SI-specific considerations that supplement existing model risk management, governance, technology, compliance, and operational-risk practices.
Banks are not required to define a separate SI risk appetite, and examiners should not treat SI as a separate and distinct risk category.
Why it matters
The OCC’s supervisory framework is a significant development in the regulation of AI in the banking industry. It provides guidance for examiners to evaluate banks’ use of AI and agentic AI, and encourages banks to conduct their activities in a safe and sound manner. The framework also emphasizes the importance of human oversight and risk management in the use of AI.
The OCC's supervisory framework is a significant development in the regulation of AI in the banking industry.
It provides guidance for examiners to evaluate banks' use of AI and agentic AI, and encourages banks to conduct their activities in a safe and sound manner.
The framework also emphasizes the importance of human oversight and risk management in the use of AI.
The OCC's approach is technology-neutral, encouraging safety, soundness, and innovation in the banking industry.
The framework is not meant to be used by banks to assess their use of Super Intelligence (SI) or their SI risk management.
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What to watch next
The impact of the OCC’s supervisory framework on the banking industry, particularly in terms of the adoption and regulation of AI and agentic AI.
The impact of the OCC's supervisory framework on the banking industry, particularly in terms of the adoption and regulation of AI and agentic AI.
The role of human oversight and risk management in the use of AI in the banking industry.
The potential consequences of the OCC's approach on the banking industry, including the potential for increased innovation and risk.
The impact of the framework on the use of AI in specific areas, such as revenue recognition, credit scoring, and sales forecasting.
The potential for the framework to influence the development of AI and agentic AI in the banking industry.