Wall Street Gets Fresh Warning on Perils of AI from Head of OCC

A top US banking watchdog is joining the growing chorus of American officials warning that the proliferation of artificial intelligence can pose significant risks to the financial system.

Michael Hsu, who leads the Office of the Comptroller of the Currency, said Friday that the technology’s unpredictability is a particular area of concern. He said other risks include fomenting discrimination in consumer lending if AI systems are trained with biased data, and the spread of fraud and misinformation.

“The use of AI has the potential to reduce costs and increase efficiencies; improve products, services and performance; strengthen risk ...