The House Financial Services Committee has revealed a report on Artificial Intelligence (AI). The staff report comes from the Committee’s bipartisan Working Group on AI.
The report is being released in advance of a Committee hearing next week entitled “AI Innovation Explored: Insights into AI Applications in Financial Services and Housing.”
Committee Chairman Patrick McHenry said that it is vital that lawmakers and regulators keep pace as AI becomes ubiquitous.
“This report represents a bipartisan effort to understand the benefits, and potential risks, of artificial intelligence in the financial services and housing industries. It also highlights the need for proper oversight and consumer protections that address the growing number of use cases for artificial intelligence. I am proud of the work and contributions of Members on both sides of the aisle and thank Ranking Member Waters and Congressmen Hill and Lynch for their leadership. This report lays out a blueprint for lawmakers as we navigate how to harness and oversee this evolving technology.”
Ranking Member Maxine Waters said the bipartisan working group builds upon her efforts when she was chair of the Committee.
“I appreciate Chairman McHenry for taking this issue seriously,” said Waters.
“This report represents a bipartisan effort to understand the benefits and potential risks of artificial intelligence in the financial services and housing industries. It also highlights the need for proper oversight and consumer protections that address the growing number of use cases for artificial intelligence. I am proud of the work and contributions of Members on both sides of the aisle and thank Ranking Member Waters and Congressmen Hill and Lynch for their leadership. This report lays out a blueprint for lawmakers as we navigate how to harness and oversee this evolving technology.”
Representative French Hill, Chair of the AI subcommittee, shared that they met with industry insiders and regulators to gain insight into AI’s impact.
“I am pleased with our progress. Our members have worked tirelessly to find common ground, and this report highlights our commitment to driving innovation, protecting privacy rights of Americans, and ensuring that the United States takes a thoughtful approach while striving to be a global leader in AI development and use.”
Findings outlined in the report and highlighted by the Committee include:
- Given the critical role of the financial and housing markets, the Committee should play a leading role in overseeing the adoption of AI in the financial services and housing industries.
- The Committee must ensure regulators apply and enforce existing laws, including anti-discrimination laws, and assess regulatory gaps as market participants adopt AI.
- The Committee should ensure the financial regulators have the appropriate focus and tools to oversee new products and services.
- The Committee should continue to consider how to reform data privacy laws given the importance of data, especially consumer data, to AI.
- The Committee should work with financial regulators to understand AI’s impact on the workforce.
- The Committee should ensure US global leadership on AI development and use.
The report is available to download here.
.The hearing on AI will take place on Tuesday, July 23, 2024, at 10:00 AM ET. The hearing will be live-streamed on the Committee’s website.