Federal Reserve Board member Bowman: The Fed should not interfere too much with banks on new technologies such as artificial intelligence

On 15 July, Federal Reserve Commissioner Bowman stated that lending institutions were better aware of the risks of innovation and should be allowed to decide when new technologies, such as artificial intelligence, would be adopted. In a meeting on financial inclusion, Bowman said: “When and how to innovate depend on each bank and its management. They know their clients, their communities and their risk tolerance better than we do.” Bowman also stated that the Fed should “set clear expectations, be transparent and not interfere with individual business decisions related to innovation”. Bowman's remarks coincided with the assessment by senior officials of the impact of the rapid development of artificial intelligence platforms, including the new Mythos AI model launched by Anthropic. Earlier on Tuesday, at the same meeting, the Fed Bar stated that, while he was pleased with the emergence of innovation, it was not clear whether artificial intelligence would reduce or exacerbate income and wealth inequalities。