State bank regulators publish their own AI examination playbook
The Conference of State Bank Supervisors released an AI Supervisory Framework on September 16 to help state examiners review AI use at state-chartered banks and state-licensed nonbank financial institutions, covering governance, AI inventories, generative AI, third-party risk and consumer protection. CSBS president Brandon Milhorn said AI "provides a powerful new tool for financial institutions to improve services, protect consumers, and increase operating efficiency."
NoteThe OCC, Federal Reserve and FDIC updated joint model-risk guidance in April but left generative and agentic AI out of scope, calling it too new to pin down. States just filled that gap themselves, so a state-chartered bank's AI exam can now be more specific than a federally chartered peer's.