Bowman Says ‘Change Is Coming’ to How Fed Views AI and Crypto

In a speech, US Federal Reserve Governor Michelle Bowman emphasized the need for banks and regulators to adapt to emerging technologies like artificial intelligence (AI) and cryptocurrency. Bowman warned that failing to embrace these innovations could diminish the role of financial institutions and regulators in the economy. She acknowledged the potential benefits and risks associated with AI and crypto, stressing the importance of a balanced approach that harnesses the advantages while mitigating the challenges. Bowman highlighted the need for regulators to stay ahead of the curve and develop appropriate frameworks to govern these technologies. The remarks suggest a shift in the Federal Reserve's stance towards AI and crypto, signaling a willingness to explore and integrate these innovations into the financial system. Bowman's message underscores the evolving landscape of the financial industry and the necessity for both institutions and policymakers to adapt to the changing technological landscape.