FSOC and Treasury Launch AI Innovation Series

The Financial Stability Oversight Council (FSOC) and the US Department of the Treasury have launched a new initiative aimed at helping the financial system adapt to the rapid rise of AI.

Developed alongside the Treasury’s Artificial Intelligence Transformation Office (AITO), the AI Innovation Series will bring together financial institutions, technology firms, regulators, and specialist experts in a series of roundtables designed to explore how AI can be deployed safely and effectively at scale.

The program comes as AI becomes increasingly embedded in core financial services functions, from fraud detection and cybersecurity to credit underwriting and operational risk management. This has prompted a growing recognition that oversight and governance frameworks must evolve in step with the technology.

Against this backdrop, policymakers signaled a shift in tone, positioning AI adoption not just as an opportunity but as a necessity. Officials said there is a need to move beyond a purely constraint-led approach to regulation, warning that failing to embrace productivity-enhancing technologies could itself create risk for firms and the wider system.

The Treasury said it will continue to review regulatory frameworks and enforcement policies to strike a balance between enabling innovation and safeguarding national security and long-term economic resilience.

Through its four planned roundtables, the AI Innovation Series will focus on identifying high-value use cases and developing practical approaches that allow firms to scale AI responsibly, without compromising safety and soundness.

Christina Skinner, deputy assistant secretary for FSOC, said:  “AI adoption is not merely a question of technological modernization — it is critical to America’s financial stability and a precondition to economic growth."

“When institutions cannot deploy tools that improve fraud detection, credit allocation, and operational resilience, the system becomes less efficient and less secure.”