Fed's Waller says central bank deploying AI tech cautiously?

By Michael S. Derby

Feb 24 (Reuters) - Federal Reserve Governor Christopher Waller said Tuesday the U.S. central bank is carefully moving ?to adopt artificial intelligence technology ?in a system-wide approach.

"We cannot approach AI casually," and "as a ?central bank, we hold ourselves to a ?high standard" when using the ?technology, Waller said ?at a conference held by the Federal Reserve Bank ?of Boston.

For the Fed ?and AI usage, "that means clear guardrails on how and where it's used, ?strong information-security controls, rigorous model ?validation, ?human accountability for decisions, and ongoing evaluation as the technology evolves," with innovation and risk ?management standing together as complementary priorities, the ?Fed official said.

Waller did not comment on the economic and monetary policy outlook in his prepared remarks.

Waller said that despite ?the ?Fed being a highly decentralized organization, ?it is taking a more unified approach to ?implementing AI technology.

"We're moving as one system, with shared direction and alignment," Waller said. And in terms of deciding what to deploy the technology for, "we start with the problem to ?be solved and the business need, then apply the right capability" from the suite of available ?AI technology. (Reporting by ?Michael S. Derby; Editing by ?Chizu Nomiyama)