The two resources: the Artificial Intelligence Lexicon and the Financial Services AI Risk Management Framework (FS AI RMF), aim to help people in the finance sector better understand AI and guide them in defending themselves from AI risks.
“Implementing the President’s AI Action Plan requires more than aspirational statements; it requires practical resources that institutions can use,” said Derek Theurer, the counsellor to the Secretary for the US Department of the Treasury, who is currently performing the Deputy Secretary’s duties.
“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.”
The Treasury said the release of the two resources comes at a time when increased risks and challenges have been created from an increased reliance on AI to support tasks such as customer, operational and decision-making functions.
“The AI Lexicon addresses these challenges by establishing common definitions for key AI concepts, capabilities, and risk categories, enabling clearer communication across regulatory, technical, legal, and business functions and supporting more consistent supervision and implementation,” the Treasury said.
On the other hand, the FS AI RMF, based on the National Institute of Standards and Technology (NIST) Artificial Intelligence Risk Management Framework, is designed to guide the financial sector on responsible AI use by providing tools and reference materials for the evaluation of AI cases, managing risks and ensuring AI implementation decisions are transparent, resilient and accountable.
“In an era where AI is rapidly reshaping financial services, ensuring security and building trust are paramount. The FS AI RMF not only aligns closely with NIST standards but also offers practical, scalable guidance tailored to the varying stages of AI adoption,” said Paras Malik, chief artificial intelligence officer at the US Department of the Treasury.
“It’s an essential resource for both community and multinational institutions alike, empowering them to effectively manage AI risks while driving growth and innovation.”
The Treasury says the release of the two resources demonstrates an effort to support public and private collaboration and solutions that are implementation-focused.
“Treasury will continue to work with federal and state regulators, industry leaders, and other stakeholders to advance the President’s AI Action Plan by promoting responsible AI adoption and reinforcing the safety and stability of the US financial system.”
Trump’s plan for AI
The new resources come just months after Trump signed an executive order that moved authority for AI regulation to the federal government, rather than state governments.
The order, “Ensuring a National Policy Framework for Artificial Intelligence”, stated that having a web of state legislation would stunt AI growth in the US, as companies have to navigate different legislation in each state.
The concern with federal regulation, however, is related to Trump’s ties with AI leaders like OpenAI’s Sam Altman, raising concerns that the regulations could be watered down to favour AI firm profitability.
The executive order, like the new resources, came as part of the AI Action Plan, which was released in July last year. The focus of the plan is infrastructure expansion, open-source innovation and reducing red tape.
Daniel Croft