WASHINGTON—Leaders of the House Financial Services Committee have introduced a bill that would direct regulators to study the potential benefits and risks of artificial intelligence in the financial and housing markets and propose possible regulations, the ABA Banking Journal reported.
The group also introduced a related resolution that, among other things, states the committee should “play a leading role” in overseeing AI adoption in both industries, the ABA Banking Journal said.
The bill would require regulators to draft four reports on the use of AI. They include a report on the risk and benefits of the technology for banks and credit unions as well as on using the technology to secure the U.S. financial system from national security threats. The reports would be required to include regulatory proposals and legislative recommendations, the ABA Banking Journal said.
The bill is backed by HFSC Chairman Patrick McHenry (R-NC) and Ranking Member Maxine Waters (D-CA)
“Artificial intelligence holds the promise to revolutionize our financial system,” said McHenry. “As firms increasingly leverage AI, lawmakers and regulators tasked with oversight of the financial services industry must constantly evaluate the risks and benefits this technology poses.”
The committee is scheduled to hold a hearing Wednesday on technological innovation in the financial services sector.