WASHINGTON—A financial marketplace that allows credit unions to grow and innovate through the responsible use of artificial intelligence (AI) is vital, America’s Credit Unions told the Treasury Department in a letter.
The letter was sent in response to Treasury’s request for information on the uses, opportunities, and risks of artificial intelligence in the financial services sector.
In the letter, America’s Credit Unions Director of Innovation and Technology Andrew Morris offered support for “non-regulatory approaches” for supporting and evaluating the use of AI within the financial services sector.
“Policymakers should avoid developing guidance targeted at general AI behavior with the intent of applying it to narrow and already highly regulated banking applications—such as credit underwriting or customer service interaction,” wrote Morris. “Doing so would overstate the perceived autonomy of AI agents while undervaluing the robust risk management processes already required by the National Credit Union Administration (NCUA) and other banking regulators.”
‘Hostility & Scrutiny’
Morris further stated that an environment of “regulatory skepticism or even hostility towards AI would harm credit unions and their members.”
“AI has demonstrated a capacity to expand access to credit for underserved and minority populations, reduce competitive barriers for small, community institutions, and protect consumers when applied to the field of cybersecurity,” the letter reads..
Morris outlined several uses and opportunities of AI, specifically noting the type of “narrow AI” used by credit unions, which he said often falls into three buckets: underwriting support; risk management and financial crime; and customer service improvements.
Committed to Safety
“Credit unions are committed to using AI safely, securely, and with the goal of helping their members meet their financial needs. Regulators should recognize the tech-neutral applicability of existing laws with the aim of signaling acceptance—rather than skepticism—of responsible AI innovation,” Morris concluded.