On 7 July 2026 Federal Reserve Vice Chair for Supervision Michelle Bowman, who chairs the FSB Standing Committee on Supervisory and Regulatory Cooperation that led the work, opened the FSB's outreach on the AI sound practices. She said the Fed has seen a noticeable increase in AI use by banks of all sizes, that the practices are proportionate to institution size and complexity, that lower-risk AI uses should get a lighter supervisory touch, and that the final report will be delivered to the US G20 presidency later in 2026.
| Document | Bowman remarks at FSB AI outreach (July 2026) — Opening remarks on sound practices for artificial intelligence (FSB virtual outreach event) |
| Issued by | Financial Stability Board |
| Type | Speech |
| Status | Final |
| Published | Jul 7, 2026 |
| Applies to | Consultation stakeholders; signals US supervisory stance on FSB AI sound practices |
| Official source | fsb.org ↗ |
| Use cases | AI governance (general) · Generative & agentic AI |
What are the key points of Bowman remarks at FSB AI outreach (July 2026)?
- Speaker: Michelle W. Bowman, Fed Vice Chair for Supervision and chair of the FSB SRC, which initiated the sound-practices work.
- Asks institutions to determine whether AI use is material to business operations or legal and regulatory obligations.
- Emphasises proportionality between large complex and smaller institutions.
- Requests feedback on whether the practices are too prescriptive and where gaps remain on material risks.
- Confirms the final report as a 2026 deliverable to the US G20 presidency.
What did Bowman remarks at FSB AI outreach (July 2026) change for banks?
Shows the US prudential lead is driving the FSB work, making it likely the practices align with, and feed into, Federal Reserve and OCC examination expectations.
Who is leading the FSB's AI sound practices work?
The FSB Standing Committee on Supervisory and Regulatory Cooperation, chaired by Fed Vice Chair for Supervision Michelle Bowman.
| Date | Document | Status |
|---|---|---|
| Aug 6, 2026 | Responses to FSB AI sound practices consultation (Aug 2026) — Public responses to consultation on Sound Practices for Responsible Adoption of Artificial Intelligence (AI) | Final |
| Jun 10, 2026 | FSB AI sound practices consultation (June 2026) — Sound Practices for Responsible Adoption of Artificial Intelligence (AI): Consultation report | Proposed |
| Oct 10, 2025 | FSB AI monitoring report (Oct 2025) — Monitoring Adoption of Artificial Intelligence and Related Vulnerabilities in the Financial Sector | Final |
| Oct 10, 2025 | FSB next steps on AI monitoring (Oct 2025) — FSB outlines next steps for authorities on AI monitoring | Final |
| Nov 14, 2024 | FSB AI financial stability report (Nov 2024) — The Financial Stability Implications of Artificial Intelligence | Final |
| Dec 4, 2023 | FSB third-party risk toolkit (2023) — Final Report on Enhancing Third-party Risk Management and Oversight: A toolkit for financial institutions and financial authorities | Final |
Follow every document these regulators publish
6 curated AI stories for banking executives · Every morning · Free
Subscribe to BankingNewsAI →