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ARTICLE · 20 OCTOBER 2026

CSBS Releases Artificial Intelligence Supervisory Framework: What Financial Institutions Should Know

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The Conference of State Bank Supervisors has released a new Artificial Intelligence Supervisory Framework that provides state regulators with a comprehensive roadmap for evaluating how financial institutions deploy and manage AI systems. This examiner guide emphasizes risk-based governance, enterprise-wide AI inventories, and heightened scrutiny of generative and agentic AI technologies, while maintaining that existing consumer protection and safety obligations remain fully applicable to AI-enabled decision

United StatesFinance and Banking
John Stoker
John Stoker
Kathryn Wellman
Kathryn Wellman
Jules W. Carter
Jules W. Carter

On September 16, 2026, the Conference of State Bank Supervisors (“CSBS”) released its new Artificial Intelligence Supervisory Framework, an examiner guide designed to help state regulators evaluate how financial institutions use artificial intelligence and assess related risks.

Key Takeaways

While the CSBS framework does not create new legal requirements or supervisory expectations and expressly refers to the framework as a discretionary supervisory tool, it does provide a roadmap for how state regulators are likely to approach artificial intelligence (AI) examinations going forward. Institutions should expect increasing scrutiny of:

  • Enterprise-wide AI inventories and use-case mapping;

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