November 16, 2024

New York Department of Financial Services provides AI cybersecurity guidance: what you need to know

In this article:

Date of Release: On October 16, 2024, the New York State Department of Financial Services (DFS) issued an industry letter (the “Guidance”) to Covered Entities under 23 NYCRR Part 500 (“Cybersecurity Regulation”).
Target Audience: The Guidance applies to financial services companies and other Covered Entities defined under the Cybersecurity Regulation.
Focus: It addresses cybersecurity risks arising from artificial intelligence (AI) and strategies to mitigate these risks given advancements and growing reliance on AI.
Reason for Issuance: The Guidance responds to financial institutions’ inquiries about mitigating AI-related risks to ensure compliance with DFS’s Cybersecurity Regulation.
Regulatory Background:
- DFS’s Cybersecurity Regulation, established in 2017, mandates minimum cybersecurity standards for Covered Entities.
- These standards include addressing threats posed by AI.
Key Recommendation: The Guidance outlines a framework for assessing AI-related cybersecurity risks to ensure robust compliance with regulatory requirements.
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