AI Oversight Enters a Crucial Summer of Deadlines

The next phase of artificial intelligence regulation is taking shape through committees, consultations and comment periods rather than a single sweeping federal rule.

A Federal Register notice published Monday (July 20) shows the National Institute of Standards and Technology refreshing the government’s AI advisory structure. NIST is seeking candidates for the National Artificial Intelligence Advisory Committee and its Subcommittee on Artificial Intelligence and Law Enforcement. Nominations will be accepted on an ongoing basis and considered as vacancies arise.

The committee does not write regulations or bring enforcement actions. It advises the president and other federal officials on issues that could eventually shape legislation, technical standards and agency policy.

Its mandate includes U.S. competitiveness, commercial applications, safety, security, legal rights and responsibility for violations involving AI systems. It must also examine how policymakers can protect individuals without unnecessarily slowing innovation.

For banks and payments companies, the most significant part of that mandate may be accountability.

An AI-supported transaction can resemble a relay race in which several businesses carry the baton. An agentic purchase might involve a model developer, commerce platform, identity provider, digital wallet, merchant, payment processor and card issuer. Each participant may hold only a portion of the instructions, authentication records and transaction evidence.

That structure can make it difficult to determine which company is responsible when an agent makes an unauthorized purchase, presents inaccurate information or acts outside the limits established by the customer.

Recommendations from the NIST-administered committee could influence how companies document those handoffs. Financial institutions may need clearer records showing which system initiated an action, what information it considered, which controls were applied and when a person or customer approved the transaction.

Two approaching comment deadlines add urgency to the broader regulatory discussion.

The Financial Stability Board is accepting responses through Wednesday (July 22) on its consultation covering sound practices for the responsible adoption of AI by financial institutions.

The proposal lays out 12 practices covering organization-wide governance and the stages through which artificial intelligence systems are developed, deployed, monitored and retired. It also asks whether the framework adequately addresses newer forms of AI, including generative and agentic systems.

The practices are not intended to create a binding international standard. However, the FSB said boards and senior executives can use them when considering business strategy, technology adoption and risk management. The FSB’s announcement of the consultation also emphasizes oversight of outside technology providers, making third-party risk a central part of the process.

A second deadline arrives July 31, when comments close on a proposed Federal Trade Commission policy statement concerning AI accuracy.

The FTC is examining when companies’ claims about the accuracy, objectivity or suitability of an AI system could become deceptive under Section 5 of the FTC Act. The proposal focuses in part on situations in which a system’s actual behavior conflicts with the way the company markets it to customers.

Together, the developments show AI oversight becoming more procedural. Government agencies and international bodies are moving from broad principles toward decisions about documentation, board accountability, vendor controls and the claims companies make about AI products.

For financial institutions, the immediate assignment is less about predicting the final rulebook than building the evidence needed to explain how an artificial intelligence system reached a result and who was responsible at each step.