As originally reported by Bloomberg, The Federal Reserve and the Office of the Comptroller of the Currency (OCC) have paused a number of cyber security related bank examinations to give banks time to patch vulnerabilities and reinforce their cyber defences and networks.
Mythos is only currently accessible by a select few vendors, with banks and regulators both included.
Alongside giving banks more time to ready their defences, it will also allow regulators to stress-test defences, such as the OCC which is currently trialing the technology.
Despite the pause, examiners from the regulators are still keeping up with banks and any cyber issues, and maintain that the halt of exams does not mean a drop in regulatory oversight.
Earlier this month, Federal Reserve vice chair for supervision Michelle W. Bowman discussed the impact of AI on the financial sector.
“AI has become an integrated part of our daily experience. Financial institutions are developing their own applications and implementing vendor-assisted tools. Banks of all sizes benefit from its greater efficiency, speed, and content generation,” she said.
“Whether used in targeted modeling or enterprise-wide tools, AI will become a force multiplier for the financial system, and in the broader US economy.”
However, she also discussed the “dynamic nature” of AI with models like Anthropic’s Mythos presenting both risks and benefits.
“The improved ability to identify cyber vulnerabilities comes with the potential to address these weaknesses to enhance cyber security. And of course, we have already seen that AI has the potential to improve efficiency and effectiveness, particularly within the financial system,” she said.
She also touched on how the Federal Reserve had been monitoring AI with banks and financial firms, adding that the focus was working to identify and mitigate cases where AI could lead to financial or cyber risk.
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