Artificial intelligence has emerged as a priority risk for the US financial system, with Treasury Secretary Scott Bessent telling Congress that regulators are stepping up oversight of how AI is used across markets and institutions. He said AI is increasingly used in compliance, fraud detection and risk management, but warned of new vulnerabilities. "AI can be a great tool, but AI can also be a risk through state and non-state actors," Bessent said. "We are working with public and private sector partners to enhance system resilience while closely monitoring emerging risk," Bessent added.Republican lawmakers welcomed the emphasis on innovation. Lawmakers said they expect further updates as FSOC's AI work evolves.FSOC was established after the 2008 financial crisis to monitor systemic risks across the financial system.

Source: Economic Times February 06, 2026 10:23 UTC