# FSB AI sound practices consultation (June 2026): Sound Practices for Responsible Adoption of Artificial Intelligence (AI): Consultation report

Source: https://www.bankingnewsai.com/ai-regulation/documents/fsb-ai-sound-practices-consultation-2026
Last updated: Sep 26, 2026

On 10 June 2026 the FSB published a consultation proposing 12 sound practices for responsible AI adoption by financial institutions, with comments due 22 July 2026. Practices 1–4 cover organisation-wide governance (strategic direction and oversight, governance and accountability, incorporating AI into the risk-management framework, organisational adaptability); practices 5–12 cover the AI lifecycle (materiality and risk assessment, selection, data governance, explainability and transparency, performance management, human oversight, cyber and ICT risk, third-party AI risk). It addresses all forms of AI with specific attention to generative and agentic AI. The final report is expected in October 2026 as a deliverable to the US G20 presidency.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [FSB](https://www.bankingnewsai.com/ai-regulation/fsb) |
| Type | Consultation |
| Status | Proposed · comment period closed |
| Published | Jun 10, 2026 |
| Comment deadline | Jul 22, 2026 |
| Applies to | All types of financial institutions, banks and non-banks, proportionate to size and complexity; addressed to FSB member authorities for implementation |
| Official text | https://www.fsb.org/2026/06/sound-practices-for-responsible-adoption-of-artificial-intelligence-ai-consultation-report/ |

## Key points

- Sound Practice 1 Strategic direction and oversight: board and senior management align AI with business model, risk appetite and strategy.
- SP2 Governance and accountability; SP3 Incorporation of AI risks into the risk-management framework; SP4 Organisational adaptability (skills, resourcing).
- SP5 Materiality and risk assessment; SP6 Selection of AI models/systems (traditional, GenAI or agentic) fit for the use case; SP7 Data governance.
- SP8 Explainability and transparency; SP9 Performance management including testing and ongoing monitoring; SP10 Human oversight, with extra measures for highly autonomous agentic AI.
- SP11 Cyber and ICT risk management for AI; SP12 Third-party AI risk management, building on the FSB's 2023 third-party toolkit.
- Agentic AI risks named include autonomous multi-step actions, agentic memory poisoning, and AI-generated code defects; case studies include agentic fraud detection at a large bank.
- Proportionality: lower-risk AI uses should get a lighter supervisory and regulatory touch (Fed Vice Chair Bowman, 7 July 2026 FSB outreach).
- 124 public responses published 6 August 2026; FSB expects to publish the final report 'in the coming months'.

## What changed for banks

It is the FSB's first firm-level AI expectations rather than authority-level monitoring. For US banks it overlaps with SR 11-7/OCC model-risk guidance and 2023 third-party guidance but adds explicit expectations on AI inventories, explainability, human oversight and agentic AI that examiners are likely to import.

## Use cases it governs

- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)
- [Model risk management](https://www.bankingnewsai.com/ai-regulation/by-use-case#model-risk)
- [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai)
- [Third-party & vendor AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#third-party-vendors)
- [Cybersecurity](https://www.bankingnewsai.com/ai-regulation/by-use-case#cybersecurity)
- [Data & privacy](https://www.bankingnewsai.com/ai-regulation/by-use-case#data-privacy)

## FAQ

### What are the FSB's 12 sound practices for AI?

Strategic direction and oversight; governance and accountability; incorporation of AI risks into the risk-management framework; organisational adaptability; materiality and risk assessment; selection; data governance; explainability and transparency; performance management; human oversight; cyber and ICT risk management; third-party AI risk management.

### When is the FSB's final AI sound practices report due?

October 2026, as a deliverable to the US G20 presidency; as of 26 August 2026 only the consultation responses (6 August) have been published.

### Do the FSB sound practices apply to small banks?

They are meant for all financial institutions but applied proportionately; the FSB and Fed Vice Chair Bowman stressed lower-risk AI uses should receive a lighter touch.

## Related documents

- [FSB Chair's letter to G20 (Aug 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-chair-letter-g20-august-2026) — FSB Chair's letter to G20 Finance Ministers and Central Bank Governors: August 2026 — risks arising from frontier artificial intelligence models (Aug 31, 2026)
- [Responses to FSB AI sound practices consultation (Aug 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-ai-sound-practices-consultation-responses-2026) — Public responses to consultation on Sound Practices for Responsible Adoption of Artificial Intelligence (AI) (Aug 6, 2026)
- [Bowman remarks at FSB AI outreach (July 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-bowman-remarks-ai-sound-practices-2026) — Opening remarks on sound practices for artificial intelligence (FSB virtual outreach event) (Jul 7, 2026)
- [FSB AI monitoring report (Oct 2025)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-monitoring-ai-adoption-vulnerabilities-2025) — Monitoring Adoption of Artificial Intelligence and Related Vulnerabilities in the Financial Sector (Oct 10, 2025)
- [FSB next steps on AI monitoring (Oct 2025)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-next-steps-authorities-ai-monitoring-2025) — FSB outlines next steps for authorities on AI monitoring (Oct 10, 2025)
- [FSB AI financial stability report (Nov 2024)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-financial-stability-implications-of-ai-2024) — The Financial Stability Implications of Artificial Intelligence (Nov 14, 2024)
- [FSB third-party risk toolkit (2023)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-third-party-risk-toolkit-2023) — Final Report on Enhancing Third-party Risk Management and Oversight: A toolkit for financial institutions and financial authorities (Dec 4, 2023)
- [FSB 2017 AI/ML report](https://www.bankingnewsai.com/ai-regulation/documents/fsb-ai-ml-financial-services-2017) — Artificial intelligence and machine learning in financial services: Market developments and financial stability implications (Nov 1, 2017)

Last reviewed Sep 26, 2026. Cite the official text (https://www.fsb.org/2026/06/sound-practices-for-responsible-adoption-of-artificial-intelligence-ai-consultation-report/) for the rule and this page for the summary and dates.

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