Michelle Bowman, the Federal Reserve's Vice Chair for Supervision, stated in remarks prepared for an event in Colorado on Tuesday that artificial intelligence (AI) is "both a defensive tool and an evolving risk," holding significant potential for both threat actors and defenders. She urged the banking industry to strengthen system protections, including keeping asset inventories updated, deploying anti-phishing multi-factor authentication, enhancing identity and access controls, and establishing robust vulnerability identification and patch management procedures. Bowman also noted that regulators recognize the significant burden such preparations may pose for community banks and are therefore continuously adjusting IT examination methods to factor in risk profiles, emerging threats, and risks.