{"id":50695,"topic":"ai","source":"LinkedIn","title":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours - LinkedIn","url":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","url_hash":"cdb93e4fca60033eeca9500e1b64194dbd74ed70","author":"","summary":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours LinkedIn","content":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBeyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.\nPrashant Mehrotra has been chief AI officer at U.S. Bank for a little over a year; before that, he was head of AI at Allstate and director of data engineering at Capital One. He recently took our questions about how he is navigating shifts in AI thinking, how he maintains a balance between innovating and keeping a realistic reign on costs, coping with AI work slop and whether we're in an AI bubble.\n\"We have never been into token maxing. When you have some technology or some capability available to you, you first want to experiment with it, understand it. There is that excitement that happens. But in a corporate setting or even in a personal setting, I want to understand what I am getting out of this. What's the value?\" —Prashant Mehrotra, chief AI officer at U.S. Bank. More here.\nBanks fear SEC rule may limit access to capital markets\nThe Securities and Exchange Commission wants to make it easier for public companies to raise capital, but banking industry groups say one provision of the agency's proposal would have the opposite effect for some banks.\nIn a comment letter filed July 27, the American Bankers Association and the Bank Policy Institute said they support the SEC's broader effort to reform the process for establishing a \"registered offering.\" However, they argued that the proposal's changes to Form S-3 eligibility would make it more difficult for certain bank holding companies to access the public capital markets.\n\"The proposed expansion and escalation of the consequences associated with 'ineligible issuer' status would introduce a significantly more severe restriction on capital markets access that is not necessary to achieve the SEC's investor-protection objectives.\" — Joint comment letter from ABA and BPI. More here.\nHow concentration risk hit one banking-as-a-service provider\nA number of small banks that partner with fintechs have run into compliance snags. Coastal Financial is dealing with a different kind of problem in connection with its banking-as-a-service strategy: concentration risk.\nOn Thursday, the holding company for Everett, Washington-based Coastal Community Bank reported a $68.8 million credit expense tied to one of its 25 partner relationships. The move, which was prompted by the unnamed partner's deteriorating financial condition, pushed Coastal decidedly into the red during the second quarter. Its loss totaled $42.1 million, a swing from an $11 million profit in the year-ago period.\nThe news, not surprisingly, led to a battering of Coastal's stock. Shares on Thursday closed down nearly 44% at $39.91. More here.\nSign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBank-approved yield language teeters as Senate weighs CLARITY\nBank-favored changes to a much-anticipated crypto market structure bill still have a slim chance of making their way into the final legislation, as the Senate considers whether to bring the bill to the floor.\nThe CLARITY Act, after a long year of negotiations, faces a tight timeline ahead of the Senate's August recess, which begins Aug. 6. That makes this coming week the package's last realistic chance to pass into law before lawmakers leave Washington for campaign season. The bill has already been waylaid for weeks due to disagreements between Republicans and Democrats on how to enforce the bill's ethics provisions, and whether President Donald Trump's Department of Justice can effectively police the president's potential conflicts of interest in the crypto space.\nThe CLARITY Act needs 60 votes to invoke cloture with just days left before the Senate's August recess. More here.\nFed cracks down on theft at banks\nThe Federal Reserve banned two former bankers from returning to the industry for pocketing funds from elderly customers. The Fed announced enforcement actions Thursday against two former bankers for separate incidents involving misappropriation of funds.\n\"Older adults are targets for financial exploitation due to their income and accumulated life-long savings, in addition to the possibility that they may face declining cognitive or physical abilities, isolation from family and friends, lack of familiarity or comfort with technology, and reliance on others for their physical well-being, financial management, and social interaction.\" — 2022 advisory from the Financial Crimes Enforcement Network. More here.","image_url":"https://media.licdn.com/dms/image/v2/D5612AQEfh2E9thtSPw/article-cover_image-shrink_600_2000/B56Z.4TN6MG4AM-/0/1785503474253?e=2147483647&v=beta&t=ekNRZGl_j4OQlRqiAkmILbILk5Az4MqmOv-KAIIutHA","lang":"en","published_at":"2026-07-31T14:00:16+00:00","fetched_at":"2026-07-31T14:15:05+00:00","status":"read","starred":0,"extract_state":"ok","summary_auto":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning. Beyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.","cluster_id":null,"extract_retries":0,"extract_error":null,"contract_version":"news_item.v1","format_contract_version":"news_item_formats.v1","dedup_url":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 4785 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":4785,"summary_length":380,"usable_text_length":4785,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":4785,"summary_length":380}},"news_item":{"id":50695,"canonical_url":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","source_url":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","title":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours - LinkedIn","source_name":"LinkedIn","author":null,"published_at":"2026-07-31T14:00:16+00:00","locale":"en","topic":"ai","tags":[],"rss_summary":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours LinkedIn","full_text":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBeyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.\nPrashant Mehrotra has been chief AI officer at U.S. Bank for a little over a year; before that, he was head of AI at Allstate and director of data engineering at Capital One. He recently took our questions about how he is navigating shifts in AI thinking, how he maintains a balance between innovating and keeping a realistic reign on costs, coping with AI work slop and whether we're in an AI bubble.\n\"We have never been into token maxing. When you have some technology or some capability available to you, you first want to experiment with it, understand it. There is that excitement that happens. But in a corporate setting or even in a personal setting, I want to understand what I am getting out of this. What's the value?\" —Prashant Mehrotra, chief AI officer at U.S. Bank. More here.\nBanks fear SEC rule may limit access to capital markets\nThe Securities and Exchange Commission wants to make it easier for public companies to raise capital, but banking industry groups say one provision of the agency's proposal would have the opposite effect for some banks.\nIn a comment letter filed July 27, the American Bankers Association and the Bank Policy Institute said they support the SEC's broader effort to reform the process for establishing a \"registered offering.\" However, they argued that the proposal's changes to Form S-3 eligibility would make it more difficult for certain bank holding companies to access the public capital markets.\n\"The proposed expansion and escalation of the consequences associated with 'ineligible issuer' status would introduce a significantly more severe restriction on capital markets access that is not necessary to achieve the SEC's investor-protection objectives.\" — Joint comment letter from ABA and BPI. More here.\nHow concentration risk hit one banking-as-a-service provider\nA number of small banks that partner with fintechs have run into compliance snags. Coastal Financial is dealing with a different kind of problem in connection with its banking-as-a-service strategy: concentration risk.\nOn Thursday, the holding company for Everett, Washington-based Coastal Community Bank reported a $68.8 million credit expense tied to one of its 25 partner relationships. The move, which was prompted by the unnamed partner's deteriorating financial condition, pushed Coastal decidedly into the red during the second quarter. Its loss totaled $42.1 million, a swing from an $11 million profit in the year-ago period.\nThe news, not surprisingly, led to a battering of Coastal's stock. Shares on Thursday closed down nearly 44% at $39.91. More here.\nSign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBank-approved yield language teeters as Senate weighs CLARITY\nBank-favored changes to a much-anticipated crypto market structure bill still have a slim chance of making their way into the final legislation, as the Senate considers whether to bring the bill to the floor.\nThe CLARITY Act, after a long year of negotiations, faces a tight timeline ahead of the Senate's August recess, which begins Aug. 6. That makes this coming week the package's last realistic chance to pass into law before lawmakers leave Washington for campaign season. The bill has already been waylaid for weeks due to disagreements between Republicans and Democrats on how to enforce the bill's ethics provisions, and whether President Donald Trump's Department of Justice can effectively police the president's potential conflicts of interest in the crypto space.\nThe CLARITY Act needs 60 votes to invoke cloture with just days left before the Senate's August recess. More here.\nFed cracks down on theft at banks\nThe Federal Reserve banned two former bankers from returning to the industry for pocketing funds from elderly customers. The Fed announced enforcement actions Thursday against two former bankers for separate incidents involving misappropriation of funds.\n\"Older adults are targets for financial exploitation due to their income and accumulated life-long savings, in addition to the possibility that they may face declining cognitive or physical abilities, isolation from family and friends, lack of familiarity or comfort with technology, and reliance on others for their physical well-being, financial management, and social interaction.\" — 2022 advisory from the Financial Crimes Enforcement Network. More here.","excerpt":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning. Beyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.","extraction":{"state":"ok","confidence":0.9,"error":null,"explanation":"High confidence: full text extraction produced 4785 characters.","diagnostics_url":"/api/diagnose?url=https%3A//www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 4785 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":4785,"summary_length":380,"usable_text_length":4785,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":4785,"summary_length":380}}},"display_formats":["compact","card","full","digest_section","json"]},"daily_stack_record":{"title":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours - LinkedIn","url":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","summary":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning. Beyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.","source":"LinkedIn","date":"2026-07-31T14:00:16+00:00","content":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBeyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.\nPrashant Mehrotra has been chief AI officer at U.S. Bank for a little over a year; before that, he was head of AI at Allstate and director of data engineering at Capital One. He recently took our questions about how he is navigating shifts in AI thinking, how he maintains a balance between innovating and keeping a realistic reign on costs, coping with AI work slop and whether we're in an AI bubble.\n\"We have never been into token maxing. When you have some technology or some capability available to you, you first want to experiment with it, understand it. There is that excitement that happens. But in a corporate setting or even in a personal setting, I want to understand what I am getting out of this. What's the value?\" —Prashant Mehrotra, chief AI officer at U.S. Bank. More here.\nBanks fear SEC rule may limit access to capital markets\nThe Securities and Exchange Commission wants to make it easier for public companies to raise capital, but banking industry groups say one provision of the agency's proposal would have the opposite effect for some banks.\nIn a comment letter filed July 27, the American Bankers Association and the Bank Policy Institute said they support the SEC's broader effort to reform the process for establishing a \"registered offering.\" However, they argued that the proposal's changes to Form S-3 eligibility would make it more difficult for certain bank holding companies to access the public capital markets.\n\"The proposed expansion and escalation of the consequences associated with 'ineligible issuer' status would introduce a significantly more severe restriction on capital markets access that is not necessary to achieve the SEC's investor-protection objectives.\" — Joint comment letter from ABA and BPI. More here.\nHow concentration risk hit one banking-as-a-service provider\nA number of small banks that partner with fintechs have run into compliance snags. Coastal Financial is dealing with a different kind of problem in connection with its banking-as-a-service strategy: concentration risk.\nOn Thursday, the holding company for Everett, Washington-based Coastal Community Bank reported a $68.8 million credit expense tied to one of its 25 partner relationships. The move, which was prompted by the unnamed partner's deteriorating financial condition, pushed Coastal decidedly into the red during the second quarter. Its loss totaled $42.1 million, a swing from an $11 million profit in the year-ago period.\nThe news, not surprisingly, led to a battering of Coastal's stock. Shares on Thursday closed down nearly 44% at $39.91. More here.\nSign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBank-approved yield language teeters as Senate weighs CLARITY\nBank-favored changes to a much-anticipated crypto market structure bill still have a slim chance of making their way into the final legislation, as the Senate considers whether to bring the bill to the floor.\nThe CLARITY Act, after a long year of negotiations, faces a tight timeline ahead of the Senate's August recess, which begins Aug. 6. That makes this coming week the package's last realistic chance to pass into law before lawmakers leave Washington for campaign season. The bill has already been waylaid for weeks due to disagreements between Republicans and Democrats on how to enforce the bill's ethics provisions, and whether President Donald Trump's Department of Justice can effectively police the president's potential conflicts of interest in the crypto space.\nThe CLARITY Act needs 60 votes to invoke cloture with just days left before the Senate's August recess. More here.\nFed cracks down on theft at banks\nThe Federal Reserve banned two former bankers from returning to the industry for pocketing funds from elderly customers. The Fed announced enforcement actions Thursday against two former bankers for separate incidents involving misappropriation of funds.\n\"Older adults are targets for financial exploitation due to their income and accumulated life-long savings, in addition to the possibility that they may face declining cognitive or physical abilities, isolation from family and friends, lack of familiarity or comfort with technology, and reliance on others for their physical well-being, financial management, and social interaction.\" — 2022 advisory from the Financial Crimes Enforcement Network. More here.","confidence":0.9,"diagnostics_url":"/api/diagnose?url=https%3A//www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","quality_bucket":"high","failure_kind":"none","retryable":false,"quality_reason":"High confidence: full text extraction produced 4785 characters.","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 4785 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":4785,"summary_length":380,"usable_text_length":4785,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":4785,"summary_length":380}},"tags":[]},"fallback_formats":["markdown","json","html"],"actions":{"read":"/item/50695","export_markdown":"/api/items/50695/export?format=markdown","export_json":"/api/items/50695/export?format=json","diagnose":"/api/diagnose?url=https%3A//www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc"},"formats":{"full":{"id":50695,"title":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours - LinkedIn","url":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","source":"LinkedIn","author":null,"published_at":"2026-07-31T14:00:16+00:00","locale":"en","topic":"ai","tags":[],"excerpt":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning. Beyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.","full_text":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBeyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.\nPrashant Mehrotra has been chief AI officer at U.S. Bank for a little over a year; before that, he was head of AI at Allstate and director of data engineering at Capital One. He recently took our questions about how he is navigating shifts in AI thinking, how he maintains a balance between innovating and keeping a realistic reign on costs, coping with AI work slop and whether we're in an AI bubble.\n\"We have never been into token maxing. When you have some technology or some capability available to you, you first want to experiment with it, understand it. There is that excitement that happens. But in a corporate setting or even in a personal setting, I want to understand what I am getting out of this. What's the value?\" —Prashant Mehrotra, chief AI officer at U.S. Bank. More here.\nBanks fear SEC rule may limit access to capital markets\nThe Securities and Exchange Commission wants to make it easier for public companies to raise capital, but banking industry groups say one provision of the agency's proposal would have the opposite effect for some banks.\nIn a comment letter filed July 27, the American Bankers Association and the Bank Policy Institute said they support the SEC's broader effort to reform the process for establishing a \"registered offering.\" However, they argued that the proposal's changes to Form S-3 eligibility would make it more difficult for certain bank holding companies to access the public capital markets.\n\"The proposed expansion and escalation of the consequences associated with 'ineligible issuer' status would introduce a significantly more severe restriction on capital markets access that is not necessary to achieve the SEC's investor-protection objectives.\" — Joint comment letter from ABA and BPI. More here.\nHow concentration risk hit one banking-as-a-service provider\nA number of small banks that partner with fintechs have run into compliance snags. Coastal Financial is dealing with a different kind of problem in connection with its banking-as-a-service strategy: concentration risk.\nOn Thursday, the holding company for Everett, Washington-based Coastal Community Bank reported a $68.8 million credit expense tied to one of its 25 partner relationships. The move, which was prompted by the unnamed partner's deteriorating financial condition, pushed Coastal decidedly into the red during the second quarter. Its loss totaled $42.1 million, a swing from an $11 million profit in the year-ago period.\nThe news, not surprisingly, led to a battering of Coastal's stock. Shares on Thursday closed down nearly 44% at $39.91. More here.\nSign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBank-approved yield language teeters as Senate weighs CLARITY\nBank-favored changes to a much-anticipated crypto market structure bill still have a slim chance of making their way into the final legislation, as the Senate considers whether to bring the bill to the floor.\nThe CLARITY Act, after a long year of negotiations, faces a tight timeline ahead of the Senate's August recess, which begins Aug. 6. That makes this coming week the package's last realistic chance to pass into law before lawmakers leave Washington for campaign season. The bill has already been waylaid for weeks due to disagreements between Republicans and Democrats on how to enforce the bill's ethics provisions, and whether President Donald Trump's Department of Justice can effectively police the president's potential conflicts of interest in the crypto space.\nThe CLARITY Act needs 60 votes to invoke cloture with just days left before the Senate's August recess. More here.\nFed cracks down on theft at banks\nThe Federal Reserve banned two former bankers from returning to the industry for pocketing funds from elderly customers. The Fed announced enforcement actions Thursday against two former bankers for separate incidents involving misappropriation of funds.\n\"Older adults are targets for financial exploitation due to their income and accumulated life-long savings, in addition to the possibility that they may face declining cognitive or physical abilities, isolation from family and friends, lack of familiarity or comfort with technology, and reliance on others for their physical well-being, financial management, and social interaction.\" — 2022 advisory from the Financial Crimes Enforcement Network. More here.","reading_time_min":4,"extraction":{"state":"ok","confidence":0.9,"error":null,"explanation":"High confidence: full text extraction produced 4785 characters.","diagnostics_url":"/api/diagnose?url=https%3A//www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 4785 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":4785,"summary_length":380,"usable_text_length":4785,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":4785,"summary_length":380}}},"quality_profile":{"profile_version":"extraction_quality.v2","bucket":"high","confidence":0.9,"failure_kind":"none","retryable":false,"retry_after_attempts":0,"reason":"High confidence: full text extraction produced 4785 characters.","operator_guidance":{"severity":"ok","recommended_action":"trust_full_text","next_step":"Use the extracted full text as the primary article source.","operator_label":"Ready","can_retry":false,"can_use_summary":false,"diagnostics_required":false},"content_depth":{"contract_version":"content_depth.v1","category":"full_text","label":"Full text","has_full_text":true,"has_summary":true,"content_length":4785,"summary_length":380,"usable_text_length":4785,"source_field":"content"},"legacy_collapsed":false,"signals":{"extract_state":"ok","extract_error":null,"extract_retries":0,"content_length":4785,"summary_length":380}},"actions":{"read":"/item/50695","export_markdown":"/api/items/50695/export?format=markdown","export_json":"/api/items/50695/export?format=json","diagnose":"/api/diagnose?url=https%3A//www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc"}},"digest":{"id":50695,"title":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours - LinkedIn","url":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","source":"LinkedIn","topic":"ai","published_at":"2026-07-31T14:00:16+00:00","excerpt":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning. Beyond token-maxing: How US Bank AI chief navigates costs As investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence…","quality_bucket":"high","quality_reason":"High confidence: full text extraction produced 4785 characters.","reading_time_min":4,"cluster_id":null},"card":{"display_title":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours - LinkedIn","subtitle":"LinkedIn · 2026-07-31","summary":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning. Beyond token-maxing: How US Bank AI chief navigates costs As investors and analysts evolve from AI…","badges":["quality:high"],"links":{"read":"/item/50695","original":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","diagnose":"/api/diagnose?url=https%3A//www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc"},"quality_warning":null},"export":{"title":"Beyond token-maxing: How US Bank AI chief navigates costs; Banks fear SEC rule may limit access to capital markets—and more in Bankers' Hours - LinkedIn","url":"https://www.linkedin.com/pulse/beyond-token-maxing-how-us-bank-ai-chief-navigates-costs-mlvhc","summary":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning. Beyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.","source":"LinkedIn","date":"2026-07-31T14:00:16+00:00","content":"Sign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBeyond token-maxing: How US Bank AI chief navigates costs\nAs investors and analysts evolve from AI enthusiasm to return-on-AI scrutiny, artificial intelligence leaders within companies have to make decisions more carefully, knowing they're being watched closely.\nPrashant Mehrotra has been chief AI officer at U.S. Bank for a little over a year; before that, he was head of AI at Allstate and director of data engineering at Capital One. He recently took our questions about how he is navigating shifts in AI thinking, how he maintains a balance between innovating and keeping a realistic reign on costs, coping with AI work slop and whether we're in an AI bubble.\n\"We have never been into token maxing. When you have some technology or some capability available to you, you first want to experiment with it, understand it. There is that excitement that happens. But in a corporate setting or even in a personal setting, I want to understand what I am getting out of this. What's the value?\" —Prashant Mehrotra, chief AI officer at U.S. Bank. More here.\nBanks fear SEC rule may limit access to capital markets\nThe Securities and Exchange Commission wants to make it easier for public companies to raise capital, but banking industry groups say one provision of the agency's proposal would have the opposite effect for some banks.\nIn a comment letter filed July 27, the American Bankers Association and the Bank Policy Institute said they support the SEC's broader effort to reform the process for establishing a \"registered offering.\" However, they argued that the proposal's changes to Form S-3 eligibility would make it more difficult for certain bank holding companies to access the public capital markets.\n\"The proposed expansion and escalation of the consequences associated with 'ineligible issuer' status would introduce a significantly more severe restriction on capital markets access that is not necessary to achieve the SEC's investor-protection objectives.\" — Joint comment letter from ABA and BPI. More here.\nHow concentration risk hit one banking-as-a-service provider\nA number of small banks that partner with fintechs have run into compliance snags. Coastal Financial is dealing with a different kind of problem in connection with its banking-as-a-service strategy: concentration risk.\nOn Thursday, the holding company for Everett, Washington-based Coastal Community Bank reported a $68.8 million credit expense tied to one of its 25 partner relationships. The move, which was prompted by the unnamed partner's deteriorating financial condition, pushed Coastal decidedly into the red during the second quarter. Its loss totaled $42.1 million, a swing from an $11 million profit in the year-ago period.\nThe news, not surprisingly, led to a battering of Coastal's stock. Shares on Thursday closed down nearly 44% at $39.91. More here.\nSign up here to receive American Banker's complete Bankers' Hours newsletter — delivered to your inbox every morning.\nBank-approved yield language teeters as Senate weighs CLARITY\nBank-favored changes to a much-anticipated crypto market structure bill still have a slim chance of making their way into the final legislation, as the Senate considers whether to bring the bill to the floor.\nThe CLARITY Act, after a long year of negotiations, faces a tight timeline ahead of the Senate's August recess, which begins Aug. 6. That makes this coming week the package's last realistic chance to pass into law before lawmakers leave Washington for campaign season. The bill has already been waylaid for weeks due to disagreements between Republicans and Democrats on how to enforce the bill's ethics provisions, and whether President Donald Trump's Department of Justice can effectively police the president's potential conflicts of interest in the crypto space.\nThe CLARITY Act needs 60 votes to invoke cloture with just days left before the Senate's August recess. More here.\nFed cracks down on theft at banks\nThe Federal Reserve banned two former bankers from returning to the industry for pocketing funds from elderly customers. The Fed announced enforcement actions Thursday against two former bankers for separate incidents involving misappropriation of funds.\n\"Older adults are targets for financial exploitation due to their income and accumulated life-long savings, in addition to the possibility that they may face declining cognitive or physical abilities, isolation from family and friends, lack of familiarity or comfort with technology, and reliance on others for their physical well-being, financial management, and social interaction.\" — 2022 advisory from the Financial Crimes Enforcement Network. 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