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Federal Reserve Governor: The Fed Should Not Overly Interfere with Banks’ Adoption of New Technologies Such as AI
Svmuu News: Federal Reserve Governor Bowman stated that lenders have a better understanding of the risks posed by innovation and should be allowed to decide for themselves when to adopt new technologies such as AI. Speaking at a conference on financial inclusion, Bowman said that when and how to innovate is up to each bank and its management, who understand their customers, communities, and risk tolerance better than the Federal Reserve does. Bowman also said the Fed should set clear expectations, maintain transparency, and refrain from intervening in individual business decisions related to innovation. Bowman’s remarks came as senior officials are assessing the impact of the rapid development of AI platforms, including the new Mythos AI model launched by Anthropic. Earlier on Tuesday, at the same conference, Federal Reserve official Barr said that while he welcomes the surge in innovation, it remains unclear whether AI will reduce or exacerbate income and wealth inequality.
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