The bipartisan working group builds on efforts in recent years to explore the benefits of AI for businesses as well as ensuring Congress and federal agencies can regulate the technology.
01/16/2024 1:20 P.M.
3 minute read
Leaders of the House Financial Services Committee have formed a bipartisan Working Group on Artificial Intelligence (AI).
It will be led by Digital Asset, Financial Technology and Inclusion Subcommittee Chairman French Hill, R-Ark., and Subcommittee Ranking Member Stephen F. Lynch, D-Mass.
“The bipartisan AI Working Group will explore how AI is impacting the financial services and housing industries, including firms’ use of AI in decision-making, the development of new products and services, fraud prevention, compliance efficiency, and the enhancement of supervisory and regulatory tools, as well as how AI may impact the financial services workforce,” according to a news release.
It will also review how existing regulations address AI today and how lawmakers can guide new regulations to include both potential benefits and risks connected to AI.
The group builds on the work of the Task Force on Artificial Intelligence in the 116th and 117th Congresses.
“The rapid advance[ment] of artificial intelligence technology holds immense promise to transform society and our economy for the better, but it also comes with risks,” U.S. Rep. Patrick McHenry, R-N.C., chair of the House Financial Services Committee, said in the news release. “The Working Group will explore this technology’s potential, specifically its adoption in our financial system. It will also find ways to leverage artificial intelligence to foster a more inclusive financial system, while establishing the U.S. as the world leader in AI development and terms of use. The House Financial Services Committee will continue to build on our previous bipartisan efforts to chart a thoughtful course for AI’s future in America.”
“With this Working Group, I look forward to building on the work I established when I was [c]hair and created Congress’ first-ever Task Force on AI, where we held nearly a dozen hearings. I am also eager to get together with my colleagues on both sides of the aisle to examine the benefits and dangers of AI to ensure that this technology does not advance beyond our ability to regulate it, worsen existing inequities, and that consumers are properly protected from harm or abuse,” said U.S. Rep. Maxine Waters, D-Calif., ranking member of the House Financial Services Committee.
The Biden administration is also focused on AI.
In November 2023, it issued an executive order establishing new standards for protecting Americans’ privacy and managing the risks of artificial intelligence, ACA International previously reported.
The order encourages independent regulatory agencies with oversight over the financial services industry to “use their authorities, including considering new rulemakings and clarifying existing regulations and guidance ‘to protect American consumers from fraud, discrimination, and threats to privacy and to address other risks that may arise from the use of AI, including risks to financial stability,’” according to a summary from Brownstein Hyatt Farber Schreck LLP.
Independent regulators are also encouraged to clarify “the responsibility of regulated entities to conduct due diligence on and monitor any third-party AI services they use, and emphasizing or clarifying requirements and expectations related to the transparency of AI models and regulated entities’ ability to explain their use of AI models,” according to the summary.
ACA has supported AI regulation without impacting innovation in the financial services industry.
Learn More About AI
ACA is hosting a Hot Topic webinar, “Robotic Collections: Precision with AI,” on Jan. 22.
Join us to hear from an exciting panel of experts who will discuss how you can integrate AI into your business operations. Whether you are a seasoned professional or new to the AI landscape, this webinar will address common concerns and provide actionable advice on embracing AI in your business. Register here.
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FCC to Examine Impact of Artificial Intelligence on ‘Robocalls’ and ‘Robotexts’
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