New York State Department Of Financial Services Issues Guidance Concerning Cybersecurity Risks Posed By Artificial Intelligence

Client Updates

Last month, the New York State Department of Financial Services ("DFS"), which has broad regulatory powers over financial services-related entities and insurance companies operating in New York State, published guidance outlining the cybersecurity risks posed by artificial intelligence ("AI"). Although DFS stated that the DFS's guidance (the "Guidance") did "not impose any new requirements" beyond the obligations set forth in its existing cybersecurity regulations, DFS is the latest regulator to weigh in on the measures that companies ought to implement to combat AI-based cybersecurity fraud. Given New York's status as a global financial hub, the Guidance will likely influence how companies beyond the regulatory reach of DFS evaluate their AI-based cybersecurity.