This week, the Financial Stability Board, United States bank supervisors and the largest bank CEOs all turned their attention to the same question: how do financial institutions adopt AI, and especially AI agents, without losing control? Mike and Laura unpack four stories every banking leader should know.
A global playbook for responsible AI. On October 15, the Financial Stability Board published its final report on Sound Practices for Responsible Adoption of Artificial Intelligence, setting out 12 sound practices across organization wide AI governance and lifecycle risk management. We focus on human oversight scaled to autonomy and materiality, and on third party AI dependencies and concentration risk.
Supervisors ask how you would shut it down. Reuters reported that the Federal Reserve, the OCC and the FDIC are questioning banks about advanced AI, including whether they can track and audit AI agent decisions, prevent agents from exceeding their authority, keep humans in key decisions and shut down autonomous systems. We connect it to SR 26 2 and the ECB’s end of October deadline for plans to counter AI enabled cyber threats.
What bank CEOs said on earnings calls. From JPMorgan’s message of patience on AI payoff, to Citigroup’s reported productivity gains, to cautious words from Goldman Sachs and Wells Fargo, we look at AI as both an operating question and a credit question for the industry.
BCG on the next era of investment banking. BCG sees a record $1.1 trillion corporate and investment banking revenue pool in 2026 and estimates AI could free up to 40% of middle and back office capacity by 2030, while noting that is not the same as a net headcount reduction.
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