Artificial intelligence is one of several key issues facing banks surveyed in the report Released Thursday (May 7).
“AI is significantly transforming the cyber threat landscape, while also providing new capabilities for managing cyber-related risks,” the OCC said in the report.
The regulator recommended that banks mitigate AI-enabled cyber risks by implementing more stringent security measures, including multi-factor authentication and timely patch management; deploying artificial intelligence to defend against threats; And understand the potential benefits and risks of increasingly advanced AI tools entering the market.
The OCC also highlighted opportunities for innovation using AI. Banks have used forms of AI for many years and are now exploring the use of generative AI and agentic AI, she said in the report. Early use cases for these new forms of AI focus on productivity and customer service.
The regulator said it is essential for banks to maintain appropriate governance and risk management when implementing AI and that the industry has already done so using traditional AI.
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“The OCC supports responsible innovation, such as artificial general intelligence and agent AI, as a way to modernize the financial system and ensure banks of all sizes remain relevant and competitive,” the regulator said in the report.
the International Monetary Fund Also directed Cyber risks The importance of cybersecurity in A Blog post Published Thursday. The IMF said existing cybersecurity measures must be expanded and strengthened because attacks are becoming faster, more automated and more sophisticated.
Examining other issues affecting banks, the OCC said in its report that banks’ profits improved in 2025, balance sheets remain strong, and banks’ performance was supported by the US economy, which showed moderate growth in 2025 and is expected to continue growing in 2026.
Regarding credit risk, the OCC said three areas that warrant monitoring are commercial real estate lending, private credit markets, and consumer borrowers with weaker credit scores. She added that credit risks remain under control.
The regulator said banks’ compliance systems may come under pressure due to geopolitical tensions that increase sanctions and money laundering risks.
“The OCC continues to look for opportunities to adapt banking supervision and regulation to risk and complexity so that banks can direct more attention and resources toward higher-risk customers and activities,” the regulator said in the report.
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