In a joint statement today, five federal financial regulatory agencies announced a consultation pertaining to the usage of artificial intelligence (AI) as well as machine learning (ML) within financial institutions. The agencies seek information from the public on how financial institutions use AI in their activities, including fraud prevention, personalization of customer services, credit underwriting, and other operations.
The Federal Reserve Board, the Consumer Financial Protection Bureau (CFPB), the Federal Deposit Insurance Corporation (FDIC), the National Credit Union Administration (NCUA) and the Office of the Comptroller of the Currency (OCC) announced the request for information (RFI) to gain input from financial institutions, trade associations, consumer groups, and other stakeholders on the growing use of AI by financial institutions.
According to the document, the five separate agencies seek to support “responsible innovation” as AI has the potential to improve decision making and enhance services available to both consumers and businesses. AI can provide improved efficiency as well as cost reduction for financial institutions. Of course, the utilization of AI could also increase the risk for operational problems and other vulnerabilities.
Usage of AI has grown rapidly among many financial services firms, something that is expected to continue as more processes are automated.
The RFI seeks comments to learn about usage of AI and ML as well as appropriate governance, risk management, and controls over AI; challenges in developing, adopting, and managing AI; and whether any clarification would be helpful.
Comments will be accepted for 60 days following publication in the Federal Register. All submissions in response to the RFI, including attachments and other supporting materials, will become part of the public record and subject to public disclosure.
RFI Financial Institutions’ Use of Artificial Intelligence, including Machine Learning 3.29.21