Federal officials are sounding the alarm to the nation’s largest banks over a new generation of artificial intelligence (AI) that could accelerate cyberattacks, as reports out of Washington show the threat is already growing more sophisticated and harder to stop.
Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell met with major bank CEOs to warn that advanced AI tools could expose weaknesses in financial systems and speed up attacks that once took weeks or months to carry out.
The meeting occurred after a new cybersecurity report found that attackers are now using AI to “reduce the cost, time, and expertise” needed to launch phishing schemes, create malware, conduct reconnaissance, and test system vulnerabilities, allowing even less experienced hackers to carry out complex operations. The report notes that advanced language models now enable novice actors to produce highly credible phishing messages, while more sophisticated groups have automated their operations through APIs, fake support systems, and tools that blend into legitimate business environments, making attacks harder to detect.
That same report shows why officials in Washington are taking the issue seriously. In 2025, cyberattacks grew in speed and scale as AI tools helped criminals and state-backed groups automate their operations, shrinking the time between discovering a system weakness and exploiting it.
On Capitol Hill, lawmakers have already been studying the risks. A bipartisan House task force warned that artificial intelligence can cause serious challenges if safeguards are not in place.
The concern is not limited to banks. Federal officials say AI is now tied to national security, financial systems, and critical infrastructure, with adversaries also adopting the technology at a rapid pace.
For everyday Americans, reportedly the impact is likely to show up first in the form of more convincing scams and fraud attempts. Cybersecurity experts found that AI-generated emails, messages, and even voice-based scams are becoming harder to detect, as attackers use the technology to mimic trusted sources and exploit human behavior.
The report also found that identity-based attacks have become the leading method for breaking into systems, with more than 80% of incidents tied to stolen credentials or compromised accounts.
Banks and federal agencies are now being pushed to respond. Washington policymakers are calling for stronger cybersecurity standards, better data protection, and clearer oversight of how AI is used across both government and the private sector.
The House task force laid out dozens of recommendations, including improving cybersecurity for federal systems, strengthening data privacy protections, and ensuring agencies can detect and respond to AI-driven threats before they spread.
Despite the warnings, officials stress that the financial system remains stable and that protections are in place. Still, the message from Washington is direct as the technology advances faster than the rules governing it.
“AI has tremendous potential to transform society and our economy for the better,” lawmakers wrote, “nevertheless, we also recognize that AI can be misused and lead to various types of harm.”
