The Conference of State Bank Supervisors released an optional framework for examining artificial-intelligence use at financial institutions. The tool helps state examiners identify AI applications, assess related risks and decide when deeper review may be appropriate. It is not a binding nationwide rule.
The framework covers state-chartered banks and state-licensed nonbank financial institutions. Each state agency will decide whether and how to incorporate it into its supervisory programme.
EXAMINERS RECEIVE A RISK-BASED TOOLKIT
The core guide includes scoping questions, document requests and procedures for reviewing governance, oversight, AI inventories and use cases. It also addresses generative AI and emerging applications, while a separate work programme provides more detailed examination steps.
Additional materials cover nonbank risks involving third parties, vendors, models and consumer protection. An optional AI use-case risk-tiering worksheet supports a risk-based assessment of individual AI use cases and helps examiners determine where additional review may be appropriate.
STATE ADOPTION WILL DETERMINE PRACTICAL REACH
Financial institutions can also use the framework to assess their own AI programmes, establish sound AI governance and risk management, and prepare for examinations. Its design accounts for differences in an institution’s size, complexity, risk profile and actual use of AI.
The framework was approved by CSBS's State Supervisory Processes Committee and Non-Depository Supervisory Committee in August 2026, and draws on the NIST AI Risk Management Framework, the Cyber Risk Institute's Financial Services AI Risk Management Framework and the US Treasury's AI Lexicon.
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