# FDIC House testimony on AI and innovation (Mar 2026): Innovation at the Speed of Markets: How Regulators Keep Pace with Technology

Source: https://www.bankingnewsai.com/ai-regulation/documents/fdic-testimony-innovation-speed-of-markets-2026
Last updated: Aug 26, 2026

On March 26, 2026 Ryan Billingsley, Director of the FDIC's Division of Risk Management Supervision, told the House Financial Services Subcommittee on Digital Assets, Financial Technology and Artificial Intelligence that banks are using AI and machine learning for fraud detection, AML/CFT, and credit underwriting, and are testing generative AI to answer customer questions, summarize service calls, write code, and summarize loan-applicant financials. He said the FDIC was piloting generative AI for its own staff with rollout expected by mid-2026 and was revising model risk management guidance toward a tailored, risk-based approach — delivered three weeks later in FIL-15-2026.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic) |
| Type | Speech |
| Status | Final |
| Published | Mar 26, 2026 |
| Applies to | Statement of supervisory posture; no direct obligations |
| Official text | https://www.fdic.gov/news/speeches/2026/innovation-speed-markets-how-regulators-keep-pace-technology-0 |

## Key points

- Testimony to the House Financial Services Subcommittee on Digital Assets, Financial Technology and Artificial Intelligence, March 26, 2026.
- Named bank AI use cases: fraud detection, AML/CFT processes, credit underwriting.
- Named generative AI pilots: customer-question support for staff, call summarization, code writing, loan-application summarization.
- FDIC itself piloting generative AI tools for internal use, with an AI literacy program covering AI fundamentals, GenAI concepts, governance, and prompt engineering.
- Previewed the model risk management revision as a 'more tailored, risk-based approach' accounting for bank size and complexity.

## What changed for banks

It is the clearest official FDIC description of how supervised banks actually use AI in 2026 and confirms the supervisory stance: encourage adoption, tailor expectations, and modernize rather than add AI rules.

## Use cases it governs

- [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai)
- [Fraud detection](https://www.bankingnewsai.com/ai-regulation/by-use-case#fraud)
- [AML / KYC](https://www.bankingnewsai.com/ai-regulation/by-use-case#aml-kyc)
- [Credit scoring & underwriting](https://www.bankingnewsai.com/ai-regulation/by-use-case#credit-underwriting)
- [Customer-facing chatbots](https://www.bankingnewsai.com/ai-regulation/by-use-case#customer-chatbots)

## FAQ

### What AI uses does the FDIC say banks have adopted?

Fraud detection, AML/CFT monitoring, and credit underwriting with AI/ML, plus generative AI pilots for staff-facing customer support, call summaries, coding, and summarizing loan applicants' financial information.

### Is the FDIC using AI internally?

Yes. The March 2026 testimony said the FDIC was piloting generative AI for staff with rollout expected by mid-2026; its public AI page lists a compliance plan and 2025 AI use-case inventory under OMB Memorandum M-25-21.

## Related documents

- [Hill House oversight testimony (Jun 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fdic-testimony-oversight-prudential-regulators-2026) — Statement of Chairman Travis Hill: Oversight of Prudential Regulators (Jun 4, 2026)
- [FDIC FIL-15-2026](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-15-2026) — Agencies Revise the Interagency Model Risk Management Guidance (Apr 17, 2026)
- [FDIC 2025 Report on Cybersecurity and Resilience](https://www.bankingnewsai.com/ai-regulation/documents/fdic-cybersecurity-resilience-report-2025) — 2025 Report on Cybersecurity and Resilience (Jul 14, 2025)
- [Hill 'Charting a New Course' speech](https://www.bankingnewsai.com/ai-regulation/documents/fdic-charting-new-course-speech-2025) — Charting a New Course: Preliminary Thoughts on FDIC Policy Issues (Jan 10, 2025)
- [FDIC 2024 Risk Review](https://www.bankingnewsai.com/ai-regulation/documents/fdic-risk-review-2024) — 2024 Risk Review — Section 5: Operational and Cyber Risks (May 22, 2024)
- [FDIC FIL-29-2023](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-29-2023) — Interagency Guidance on Third-Party Relationships: Risk Management (Jun 6, 2023)
- [FDIC FIL-27-2021](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-27-2021) — Interagency Statement on Model Risk Management for Bank Systems Supporting BSA/AML and OFAC Compliance (Apr 9, 2021)
- [FDIC FIL-20-2021](https://www.bankingnewsai.com/ai-regulation/documents/fdic-fil-20-2021) — Request for Information and Comment on Financial Institutions' Use of Artificial Intelligence, Including Machine Learning (Mar 29, 2021)

Last reviewed Aug 26, 2026. Cite the official text (https://www.fdic.gov/news/speeches/2026/innovation-speed-markets-how-regulators-keep-pace-technology-0) for the rule and this page for the summary and dates.

---

Canonical page: https://www.bankingnewsai.com/ai-regulation/documents/fdic-testimony-innovation-speed-of-markets-2026
Part of [BankingNewsAI](https://www.bankingnewsai.com/) — a free daily brief on AI in banking, an AI regulation tracker (41 authorities, 237 documents) and AI-strategy profiles of the 120 largest US banks. Markdown versions of every reference page: append `.md` to the page URL; index at https://www.bankingnewsai.com/llms.txt.