CSBS Releases AI Exam Resource for Regulators

The Conference of State Bank Supervisors (CSBS) recently released its Artificial Intelligence Supervisory Framework, a “discretionary tool for state examiners” to understand and assess regulated financial institutions’ use of AI.  The Framework also can be used by state-regulated financial institutions to review their own programs and prepare for state regulatory examinations.  CSBS states that the Framework is based on other leading AI resources, such as the National Institute of Standards and Technology (NIST) AI Risk Management Framework, the Cyber Risk Institute’s Financial Services AI Risk Management Framework, and the U.S. Department of the Treasury’s AI Lexicon.

The Framework includes:

• a Core Examiner Guide, which is the main guide for state examiners;
• an Examiner Work Program, which is a workbook used to apply the core guide;
• Nonbank AI Supplements, which are intended to provide an AI-specific supplement to existing supervisory resources for examinations, such as vendor oversight;
• an AI Use Case Risk Tiering Worksheet, which is a worksheet for individual AI use case risk assessments; and
• the Source Support Document, which identifies the Framework’s source materials.