Federal Reserve Governor Waller: The Fed is cautiously advancing the systemic application of AI technology.

Federal Reserve Governor Waller stated that the Fed is proceeding cautiously with the system-wide adoption of artificial intelligence (AI) technology. Speaking at a conference at the Federal Reserve Bank of Boston, Waller said, "We can't treat AI casually, and as a central bank, we hold ourselves to very high standards when using this technology." He indicated that for the Fed, using AI "means setting clear limits on how and where it's used, strong information security controls, rigorous model validation, human accountability for decisions, and continuous evaluation as the technology evolves. Innovation and risk management are parallel and complementary priorities." While the Fed is a highly decentralized organization, it is taking a more unified approach to implementing AI technology. Waller did not comment on the economic and monetary policy outlook in his prepared remarks. (Jinshi)