Federal Reserve Governor Michael Barr has called for stronger safeguards around artificial intelligence in financial services, amid a broader speech about the use of technology in finance.
Speaking at the Singapore FinTech Festival, Barr said firms are moving quickly to apply AI in areas such as customer service and marketing, but warned of risks tied to its use in core financial functions.
He highlighted concerns over biased data, systemic risk, and potential market manipulation, urging regulators to maintain balance between innovation and financial stability.