Federal Reserve Vice Chair Bowman said that banks should not be "micromanaged" on issues such as AI.

Michelle Bowman, Vice Chair of Supervision at the Federal Reserve, stated that banks have a better understanding of the risks associated with innovation and should have the discretion to decide when to adopt new technologies such as artificial intelligence. "The decision of when and how to innovate rests with each bank and its management," Bowman said in prepared remarks for a financial inclusion conference, "They know their customers, communities, and risk preferences better than we do." The top banking regulator at the Federal Reserve also noted that the Fed should establish clear expectations around innovation, maintain transparency, and avoid micromanaging individual business decisions. Bowman's comments come as senior officials are evaluating the impact of the rapid development of AI platforms, including the new Mythos AI model by Anthropic PBC.