Michelle Bowman, a Federal Reserve Governor, has a message for policymakers itching to regulate artificial intelligence: slow down. Speaking in Washington, Bowman warned that jumping into strict rules could backfire.

While the risks, benefits and magnitude of artificial intelligence's impact on financial services remain unclear, agencies should keep an open mind toward the technology and avoid reflexive risk aversion in bank supervision,

Federal Reserve Governor Michelle W. Bowman cautioned on Wednesday that inflation remains a significant concern and suggested that interest rates may already be closer to a “neutral” level than policymakers currently realize.