The Financial Technology Association (FTA) has posted a comment letter directed towards the US Department of Treasury in regard to a request for feedback on the use of Artificial Intelligence (AI) in financial services.
The FTA advocates on behalf of the benefits of AI, urging a coordinated approach by the Federal Government as opposed to a fragmented state-by-state regulatory environment.
Penny Lee, President and CEO of the FTA, says they appreciate the Administration’s approach to craft a coordinated policy framework for AI that “can unlock even more benefits and maintain U.S. global leadership in financial innovation.”
The FTA states that existing laws and regulations are already “fit for purpose” for responsible AI innovation.
“Importantly, these laws govern financial services activities, not technology, allowing the industry to adopt a broad range of new technologies to better serve customers. Existing laws offer numerous consumer protections, with the Fair Credit Reporting Act outlining acceptable uses of consumer data and the Equal Credit Opportunity Act prohibiting discrimination and requiring anti-bias measures.”
The FTA recommended that Treasury pursue the following recommendations:
- Policymakers should expressly support the adoption and usage of AI technologies in financial services.
- Policymakers should mitigate identifiable risks related to AI technologies by promoting standards development, enhancing risk management frameworks, and pursuing comprehensive federal data privacy and security legislation.
- Policymakers should pursue a unified regulatory approach across states.
- Policymakers should facilitate the use of AI to combat fraud and enhance regulatory compliance.
- Policymakers should form a collaborative, multi-stakeholder task force to address the ethical implications of AI.
The letter may be viewed here.
