State Regulators Give Banks an AI Exam Playbook as Federal Gap Persists

State banking regulators are giving financial institutions a clearer view of how examiners may assess artificial intelligence, including generative AI systems that remain outside federal model-risk guidance. The Conference of State Bank Supervisors ( CSBS ) released an Artificial Intelligence Supervisory Framework Tuesday (Sept. 16) for state-chartered banks and state-licensed nonbank financial institutions.