New tools are intended to standardize artificial intelligence governance and oversight across financial institutions.
The U.S. Department of the Treasury released two resources to guide the use of artificial intelligence (AI) in financial services: a shared Artificial Intelligence Lexicon and the Financial Services AI Risk Management Framework (FS AI RMF). Developed in collaboration with industry and government partners, the materials are intended to promote consistent terminology and risk management practices as financial institutions expand AI use in areas such as decision-making, customer engagement, cybersecurity, and operations.
“By establishing a common language for AI and a tailored framework for managing AI risks in financial services, these deliverables help protect consumers while supporting responsible innovation,” said Acting Deputy Secretary of the Treasury Derek Theurer.
The AI Lexicon establishes common definitions for key concepts and risk categories to reduce confusion across regulatory, legal, and technical contexts. The framework adapts the National Institute of Standards and Technology’s (NIST) AI Risk Management Framework to the financial sector, offering tools to assess risks throughout the AI lifecycle and strengthen accountability and operational resilience.
As the Lord Leads, Pray with Us…
- For Acting Deputy Secretary Derek Theurer and Chief AI Officer Paras Malik as they oversee the implementation of the AI framework.
- For U.S. treasury officials as they assess the risks and benefits AI poses to the financial sector.
- For consumers to be discerning in their utilization of AI tools in their financial management and systems.
Sources: Department of the Treasury
