Overview

• The Treasury Department has opened a 60-day public comment period on AI use in financial services.
• Janet Yellen warns that AI's complexity and vendor concentration could create systemic risks.
• Yellen emphasizes AI's potential to lower costs and improve efficiency but stresses the need for robust oversight.
• The Financial Stability Oversight Council is prioritizing AI-related risks in its regulatory agenda.
• AI tools are already being used by the IRS and financial institutions to enhance fraud detection and customer service.