ALEXANDRIA, Va.—Todd Harper and Tanya Otsuka returned to their seats on the NCUA board Thursday, taking part in the agency’s open meeting following a federal court order reinstating them.
As CUToday.info reported, U.S. District Judge Amir Ali ruled earlier this week the Trump Administration’s removal of the two Democratic board members was unlawful, warning that accepting the administration’s legal theory could open the door to a president unilaterally removing key financial regulators, including the chair of the Federal Reserve.
While the Trump Administration has filed a motion to stay the judge’s order, the court had not acted on it as of Thursday, clearing the way for Harper and Otsuka to participate.
The meeting itself was collegial, with Harper joking, “It’s been three months, have I missed anything?” The board addressed several agenda items, including artificial intelligence, the Office of the Ombudsman and the Central Liquidity Facility—giving the appearance that it was back to business as usual.
Otsuka participated in person, while Harper attended remotely.
On the topic of artificial intelligence, the NCUA discussed both its own current and future use of the technology, as well as how credit unions are beginning to adopt AI. The agency outlined its plans to collaborate with credit unions on responsible implementation and touched on the importance of NCUA guidance for CUs on its use.
NCUA staff said the agency is taking a deliberate, methodical approach to identifying technologies that can help advance its mission.
Initial research, according to staff, suggests that tools like chatbots and platforms enabling AI integration could improve efficiency, freeing up employees to focus on mission-critical responsibilities.
“For example, models can be trained to analyze large volumes of data and identify potential risks, significantly enhancing our examination program,” staff explained. “Additionally, AI can be used to develop a knowledge base that responds to inquiries, reducing the need for direct human intervention.”
Chairman Kyle Hauptman emphasized the significant business potential of AI for credit unions but also urged caution. He said credit union boards must fully understand the risks associated with AI and ensure proper controls are in place.
Hauptman warned that if issues arise—such as chatbot errors affecting members or AI-driven loan decisions leading to problems—the responsibility lies squarely with the credit union.
“You can’t blame the technology,” he said, adding that examiners will hold the credit union accountable for any mistakes.
Hauptman also acknowledged that credit unions are looking to the agency and its examiners for clear guidance on AI use.
In response, NCUA staff said the agency is developing an AI resources page on ncua.gov, which will provide credit unions with access to “authoritative guidance” and other relevant materials. The page is expected to launch soon.
Both Hauptman and staff emphasized the agency is actively seeking input (https://ask.ncua.gov/) from credit unions on their AI adoption—including challenges, barriers, and practical concerns.
Harper focused some of his questions on how credit union vendors are using AI, particularly in lending decisions. For example, Harper underscored that whether a loan decision is made by a human or a machine, NCUA will ensure it complies with all consumer financial protection and disclosure requirements.
Before the meeting closed, Otsuka addressed being back on the board.
“I will continue to carry out the NCUA mission as I always have,” she stated. “I also plan to look at the actions that were taken while we were gone, including several credit union liquidations and conservatorships, personnel actions and rulemaking reviews. I plan to work with my fellow board members on many of our shared goals and priorities, like support for small credit unions. We need to get back to work with the full NCA board. Our reinstatement on the NCA board is important for the millions of people who trust federally insured credit unions with their hard-earned money and it's also important for our entire financial system.”
But key questions remain: Will the NCUA board continue to operate at full strength? Will the court grant the motion to stay the decision reinstating Harper and Otsuka? And what could unfold as the case likely moves through the appeals process?