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FSOC names AI as a vulnerability in the US financial system

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The Financial Stability Oversight Council’s 2023 annual report, released on 14 December 2023, identified the use of AI in financial services as a vulnerability in the US financial system. It warned that AI systems with explainability problems could produce and mask biased or inaccurate results, including in lending, and urged firms and regulators to build expertise to monitor AI use. Treasury Secretary Janet Yellen told the council’s meeting that it had specifically identified AI as a vulnerability that year.

Why it matters

US financial regulators put AI on their list of system-wide risks, and the council held a conference on AI and financial stability with the Brookings Institution in June 2024.

When
14 Dec 2023
ID
WTA-N-2023-0123
Who
Financial Stability Oversight Council, U.S. Department of the Treasury; Janet Yellen

Summary by wheresthe.ai, from U.S. Department of the Treasury and the reporting credited above. Checked against the source on 9 Oct 2026.

Source copy: download the page as saved on 18 Oct 2026 (PDF). Also held by the Internet Archive.

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Cite this story

WTA-N-2023-0123: “FSOC names AI as a vulnerability in the US financial system.” wheresthe.ai, 14 Dec 2023. https://wheresthe.ai/d/us-fsoc-annual-report-ai-vulnerability-2023-12/ (source: U.S. Department of the Treasury).

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