The American Bankers Association (ABA) said the Financial Stability Board’s (FSB) draft list of 12 recommendations for AI adoption by financial institutions is useful but needs further tweaks. Outlined in a June consultation report, the FSB’s sound practices aim to guide board members and senior management. The ABA’s AI Working Group concluded the document takes a proportionate, outcomes-focused approach. The ABA encouraged U.S. banking agencies to consider the FSB’s sound practices as a helpful input. However, the ABA recommended improving and expanding the definition of “machine learning,” offered several case studies from community banks for incorporation, and suggested reorganizing and consolidating the list to aid its application at banks of all sizes. The ABA stated the consultation report “is very much a solid foundation.”