Federal Reserve Governor Michelle Bowman has expressed the importance of taking a balanced approach to regulating artificial intelligence.
In a speech prepared for delivery in Washington, she acknowledged the potential risks associated with AI but cautioned against rushing into regulatory measures that could hinder innovation.
Bowman emphasized that an overly cautious regulatory framework could distort competition and discourage the adoption of beneficial AI technologies.
Her remarks indicate a need for regulators to carefully consider the impact of their actions on technological advancement in the financial sector.