US banks’ operational risk from AI should be stress-tested, NY Fed official says
By Neil Roland ( September 25, 2026, 20:36 GMT | Insight) -- Banks’ operational risk from exposure to artificial intelligence should be subjected to stress tests, a Federal Reserve Bank of New York official said. Mihaela Nistor, the New York Fed’s Chief Risk Officer, told a group of risk managers that the thinning of long-term internal leadership stemming from AI can offset short-term efficiencies while “quietly weakening the pipelines that produce their next generation of leaders with experienced judgment.” She added in a speech: “That erosion will not show up in a loss event. It will not trip a control.”Banks’ operational risk from exposure to artificial intelligence should be subjected to stress tests, a Federal Reserve Bank of New York official said....
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