A bipartisan congressional working group will explore the impact of artificial intelligence (AI) on the financial services and housing industries.
The formation of the Working Group on Artificial Intelligence (AI) was announced by House Financial Services Committee (HFSC) Chairman Patrick McHenry and Ranking Member Maxine Waters in a Thursday (Jan. 11) press release.
The working group will investigate how the technology affects the development of new products and services, fraud prevention, compliance, supervisory and regulatory tools, and the financial services workforce, according to the release.
It will also examine how both existing and future regulations might address the potential benefits and risks associated with AI, the release said.
“The Working Group will explore this technology’s potential, specifically its adoption in our financial system,” McHenry said in the release. “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.”
One risk of the technology is that it could embed historic inequities in the financial services and housing markets, Waters said in the release.
“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,” Waters said.
The new working group will be led by Digital Assets, Financial Technology and Inclusion Subcommittee Chairman French Hill and Subcommittee Ranking Member Stephen F. Lynch, according to the release.
Six members of the group are Republicans, and six are Democrats, the release said.
It will continue the work done by the Task Force on Artificial Intelligence in previous Congresses, per the release.
In December, the Financial Stability Oversight Council (FSOC) identified the use of AI in financial services as a vulnerability in the financial system. That was the first time the agency included the technology as a potential emerging threat in its annual report.
In October, President Joe Biden issued an executive order aimed at safe AI development. The executive order in part requires AI firms to produce “standards, tools and tests” to make sure their systems are secure and trustworthy.
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