On December 19, 2024 Treasury published its report on the uses, opportunities, and risks of AI in financial services, summarizing 103 responses to its June 2024 RFI. It found AI, including generative AI, spreading across credit underwriting, fraud detection, customer service, and compliance, while amplifying data-privacy, bias, and third-party risks. It recommended that regulators clarify supervisory expectations and address gaps in existing frameworks, that the sector build AI-specific information sharing and data standards, and that firms review each AI use case for compliance with existing laws before deployment and re-evaluate periodically.
| Document | Treasury AI in Financial Services report (Dec 2024) — Artificial Intelligence in Financial Services — Report on the Uses, Opportunities, and Risks of AI in the Financial Services Sector |
| Issued by | U.S. Department of the Treasury (including the Financial Stability Oversight Council) |
| Type | Report |
| Status | Final |
| Published | Dec 19, 2024 |
| Applies to | Financial institutions and fintechs using AI; federal and state financial regulators; other government agencies (recommendations only) |
| Official source | home.treasury.gov ↗ |
| Use cases | AI governance (general) · Credit scoring & underwriting · Fair lending & discrimination · Fraud detection · Customer-facing chatbots · Third-party & vendor AI · Data & privacy · Generative & agentic AI |
What are the key points of Treasury AI in Financial Services report (Dec 2024)?
- Synthesizes 103 comment letters to the June 12, 2024 RFI
- Confirms rising AI use in underwriting, fraud detection, customer service, and regulatory compliance, with generative AI expanding the opportunity set
- Highlights amplified risks around data privacy, bias and fair lending, and dependence on third-party providers
- Recommends continued international and domestic collaboration toward consistent AI standards for financial services
- Recommends further analysis of gaps in existing regulatory frameworks and of AI-driven consumer harm
- Recommends regulators coordinate on enhancements to risk-management frameworks and clarify supervisory expectations
- Recommends sector-specific AI information sharing and data standards alongside the AI cybersecurity forum proposed in March 2024
- Recommends firms prioritize compliance review of AI use cases against existing law before deployment
What did Treasury AI in Financial Services report (Dec 2024) change for banks?
The report closed the loop on Treasury's 2024 AI work and confirmed the position all U.S. financial regulators have since held: existing laws apply to AI now, and firms are responsible for compliance before deployment. Its call for clearer supervisory expectations foreshadowed the 2026 interagency revisions to model-risk guidance and the CFPB's adverse-action circulars.
What are the recommendations in Treasury's December 2024 AI report?
Five: continue domestic and international collaboration on AI standards; analyze gaps in existing frameworks and consumer-harm risks; have regulators coordinate on risk-management enhancements and clarify supervisory expectations; build financial-services AI information sharing and data standards; and have firms review AI use cases for compliance with existing law before deployment.
Does the report create new AI rules for banks?
No. It is a findings report with recommendations. Its practical message is that existing laws and regulations already govern AI use and that compliance review must precede deployment.
| Date | Document | Status |
|---|---|---|
| Jun 24, 2026 | FSOC AI Innovation Series (Mar–May 2026) — Artificial Intelligence Innovation Series — FSOC and Treasury AI Transformation Office roundtables | Final |
| Feb 19, 2026 | Treasury FS AI RMF and AI Lexicon (Feb 2026) — Financial Services AI Risk Management Framework (FS AI RMF) and Artificial Intelligence Lexicon | Final |
| Dec 11, 2025 | FSOC 2025 Annual Report — Financial Stability Oversight Council 2025 Annual Report — Section 3.4, Harnessing Artificial Intelligence to Promote Financial Stability | Final |
| Dec 6, 2024 | FSOC 2024 Annual Report — Financial Stability Oversight Council 2024 Annual Report — Section 3.3.3, The Use of Artificial Intelligence in Financial Services | Superseded |
| Oct 17, 2024 | Treasury $4B AI fraud-prevention announcement (Oct 2024) — Treasury Announces Enhanced Fraud Detection Processes, Including Machine Learning AI, Prevented and Recovered Over $4 Billion in Fiscal Year 2024 | Final |
| Jun 12, 2024 | Treasury AI RFI (June 2024) — Request for Information on Uses, Opportunities, and Risks of Artificial Intelligence in the Financial Services Sector | Final |
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