Federal Reserve Governor Christopher Waller stated that artificial intelligence will have a significant impact on the Federal Reserve’s daily operations, particularly in payments and financial services. Speaking at the 2026 Technology-Enabled Disruption Conference: Shaping the Future of Finance and Payments, Waller described AI’s overall effect as “massive.”
“I’ve seen the birth of space exploration, the rise of the personal computer, the explosion of the internet and then smartphones,” Waller said. “None match the potential that AI has in changing our lives and doing so at breathtaking speed.”
The virtual conference took place on February 24 and was hosted by the Boston, Atlanta, and Richmond Federal Reserve Banks. The event focused on how technological innovations are affecting businesses, workers, consumers, and broader economic trends.
Waller emphasized that it is essential for the Federal Reserve to keep pace with private sector advancements to ensure reliable service delivery. He noted that all 12 Reserve Banks are working together to adopt new technologies more efficiently.
At the same time, Waller stressed responsible adoption: “We won’t get a clear signal when AI moves from rapid progress to truly systemic impact,” he said. “But waiting for perfect clarity isn’t a strategy. If we want to be ready when that moment comes, the work has to start now.” He also stated that innovation should focus on utility rather than novelty and added that “the Fed must act responsibly and cannot ‘break things and ask for forgiveness.’”
Boston Fed President Susan M. Collins addressed technology’s influence on productivity, employment, inflation, and financial system resilience in her opening remarks. She stated: “Understanding these dynamics helps inform how we think about the Fed’s dual mandate of maximum employment and price stability,” she said. “And it relates directly to the Boston Fed’s overarching mission: a vibrant economy that works for everyone.”
Collins pointed out that diverse perspectives are necessary for understanding technology-driven disruption; thus, conference participants included leaders from banking, technology, research, and policy sectors. She later discussed AI’s role in the U.S. economy with Richmond Fed President Tom Barkin.
During one panel discussion, executives from banking and fintech companies talked about using AI to improve customer service and streamline back-office processes while emphasizing continued reliance on human judgment.
“Information alone doesn’t generate insights, and it’s insights that drive management decision-making… Accountability has to stay with people,” said Dante Disparte of Circle.
Swati Bhatia from Santander Bank remarked on workforce adaptation: “What we need in the existing workforce is a change in mindset,” she said. “(The pace of change) is very fast today, and it’s only going to become faster.” She explained that AI should provide tools rather than replace employees.
Participants also discussed instant payments systems like FedNow—a service allowing funds transfers within seconds—and their potential benefits for employees who live paycheck-to-paycheck. Nick Stanescu of Boston Fed highlighted how these tools can enable faster wage access.
However, Saurav Sharma from Intuit noted many employers still use paper checks over digital payment methods because they offer greater control over cash flow timing. This practice may force some workers to pay high fees at check-cashing services if they need immediate access to wages. Sharma commented: “Our system is still a bit antiquated when it comes to (workers) accessing the money they’ve earned, and that’s where opportunity lies.”
Academic experts warned about risks related to data privacy and financial exploitation as fintech expands access through unregulated channels or new data sources such as digital footprints—personal information collected online—to assess creditworthiness more accurately than traditional credit scores alone.
Manju Puri from Duke University explained how fintech lenders can extend credit beyond traditional banks but cautioned against possible exploitation due to lighter regulation.
Andrew Lo from MIT noted improvements in advice given by AI chatbots but reminded attendees this guidance lacks fiduciary responsibility: users should not rely blindly on automated recommendations because scams are increasingly sophisticated as criminals leverage emerging technologies too.
“The upside for AI and technology is the democratization of finance,” Lo said. “One downside is cyber-risk… It’s no longer about hacking into banks but about hacking into humans.”
The Federal Reserve Bank of Boston operates across six New England states as part of the U.S. Federal Reserve System. The bank contributes by monitoring local economic conditions and formulating monetary policy, fostering economic growth nationwide through community initiatives and supporting revitalization efforts. Since July 2022,Susan Collins has served as President & CEO.
A full recording of this conference is available at bostonfed.org along with related podcast episodes covering topics like AI in credit evaluation and changes in financial services driven by fintech.
