# Federal Reserve Warns Banks on AI Cyber Risks

Federal Reserve Vice Chair for Supervision Michelle Bowman warned that AI can both strengthen banks’ cyber defenses and enable new attacks. She noted that existing model-risk guidance predates generative and agentic AI, highlighted foundational safeguards such as asset inventories, multifactor authentication, identity and access management, and vulnerability and patch management, and said examinations will account for each institution’s risk profile, including community banks’ capacity constraints. The signals identify no solicitation, award, funding, or procurement deadline; the remarks indicate a potential area of continuing demand rather than a specific contracting opportunity.

- Cybersecurity providers can relate their offerings to the controls Bowman identified, including asset visibility, access management, and vulnerability and patch management.
- Organizations serving community banks may find relevance in solutions and services that address cybersecurity needs within capacity constraints.
- There is no announced procurement action or deadline in these signals; contractors should treat the remarks as supervisory and market context, not as an open solicitation.

**Jurisdictions:** federal
**Industries:** Information Technology
**Topics:** Cybersecurity, Artificial Intelligence
**Published:** September 30, 2026

### Government Entities
- Federal Reserve (Fed)

### Key Quotes
> AI is becoming a critical component of these security measures as both a defensive tool and an evolving risk.
> — Michelle Bowman, Vice Chair for Supervision at the Federal Reserve

### Sources
- [Fed’s Bowman Warns Banks on AI Cybersecurity Risks, Cites Potential Benefits - Bloomberg](https://www.bloomberg.com/news/articles/2026-09-29/fed-s-bowman-touts-ai-benefits-risks-for-bank-cybersecurity) - Bloomberg
- [Federal Reserve's Bowman warns banks on AI cybersecurity risks and benefits](https://cryptobriefing.com/fed-bowman-ai-cybersecurity-banks) - Crypto Briefing
- [Federal Reserve Bowman: AI Brings Both Opportunities and Risks to the Banking Industry, Fed Urges Strengthening of System Security Protections | Bitget News](https://www.bitget.com/amp/news/detail/12560605888592) - Bitget