U.S. lawmakers proposed a bill requiring federal regulators to study AI’s effects on financial services and the housing industry.
A bill has been introduced by top lawmakers in the United States that would mandate federal regulators to conduct studies on the effects of artificial intelligence on the financial services and housing industries.
Congresswoman Maxine Waters proposed a bill mandating various federal financial authorities to examine the current and prospective advantages and hazards of AI in the two sectors, co-sponsored by House Financial Services Committee Chair Patrick McHenry.
According to a statement issued by the House Financial Services Committee on December 2, the duo has also provided mutual support in a resolution that recognizes the growing prevalence of AI in the housing and finance sectors.
The “AI Act of 2024,” supported by Under the Waters, mandates that principal regulators such as the Federal Reserve and the Federal Deposit Insurance Corporation must disclose how banks utilize AI to identify and prevent money laundering, cybercrime, and fraud.
Waters explained that the necessity of a more comprehensive AI reporting regulatory framework is warranted, as AI is already affecting mortgage lending and credit assessment, among other things.
The resolution by McHenry indicated that AI-driven research is utilized for market surveillance and tenant screening.
McHenry further stated, “These bills are a small, yet critical, step forward in enabling the financial system to realize the numerous benefits that artificial intelligence can provide for consumers, firms, and regulators.”
His resolution recommended that the House Financial Services Committee evaluate the feasibility of amending privacy laws in light of the increasing AI-driven nature of data usage.
McHenry also expressed his desire for the United States to continue to be a leader in the development and utilization of AI.
Waters and McHenry’s measures are based on the Bipartisan AI Working Group created by the House Committee on January 11.
The Republican members of that group are French Hill, Young Kim, Mike Flood, Zach Nunn, and Erin Houchin; the Democratic members are Stephen Lynch, Sylvia Garcia, Sean Casten, Ayanna Pressley, and Brittany Pettersen.
The group’s establishment occurred after US President Joe Biden’s executive order on October 30 to create a “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.”
