Top financial regulators, including the Federal Reserve, are worried about American banks’ use of artificial intelligence, according to a new, anonymously-sourced report published by Reuters on Monday.

Citing “six people familiar with the matter,” Reuters reports that top banking regulators in the United States fear the increasing risks of cyberattacks, rogue AI agents, and the deployment of Chinese AI technology in the American banking system. The three regulators—the Office of the Comptroller of the Currency, the Federal Deposit Insurance Corporation, and the Fed—are reportedly questioning U.S. banks, asking whether they are using AI agents to respond to cybersecurity threats and probing the kinds of guardrails the banks are establishing for safe deployment. The safeguards banks are being questioned on reportedly include whether or not the AI agents’ actions are being tracked and approved by humans, how the banks are ensuring that the agents don’t exceed authority, and whether an emergency shutdown mechanism exists if they do go rogue.

Recent developments in artificial intelligence, specifically the development of supposedly encryption-ending super-hacker agent models, have caused a stir across industries, but perhaps no other sector has given more cause for concern than banking. Any AI-driven breach or malfunction that banks possibly face could jeopardize the very sensitive information, not to mention funds, of banks’ customers, including both individuals and businesses.

The AI industry itself is partially driving some of this agentic AI panic, while somewhat ironically posing AI as the best line of defense against, well, AI.

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