# Bowman remarks at FSB AI outreach (July 2026): Opening remarks on sound practices for artificial intelligence (FSB virtual outreach event)

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

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.

## At a glance

| Field | Value |
| --- | --- |
| Authority | [FSB](https://www.bankingnewsai.com/ai-regulation/fsb) |
| Type | Speech |
| Status | Final |
| Published | Jul 7, 2026 |
| Applies to | Consultation stakeholders; signals US supervisory stance on FSB AI sound practices |
| Official text | https://www.fsb.org/2026/07/opening-remarks-on-sound-practices-for-artificial-intelligence/ |

## Key points

- 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 changed 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.

## Use cases it governs

- [AI governance (general)](https://www.bankingnewsai.com/ai-regulation/by-use-case#governance-general)
- [Generative & agentic AI](https://www.bankingnewsai.com/ai-regulation/by-use-case#generative-agentic-ai)

## FAQ

### 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.

## 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)
- [FSB AI sound practices consultation (June 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-ai-sound-practices-consultation-2026) — Sound Practices for Responsible Adoption of Artificial Intelligence (AI): Consultation report (Jun 10, 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 Aug 26, 2026. Cite the official text (https://www.fsb.org/2026/07/opening-remarks-on-sound-practices-for-artificial-intelligence/) for the rule and this page for the summary and dates.

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