The House Financial Services Committee, along with the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, have joined to introduce legislation that aims to support the usage of Artificial Intelligence (AI) in financial services.
According to a public statement, the bill, the Unleashing AI Innovation in Financial Services Act (HR 4801) would support the usage of AI in financial services via regulatory sandboxes where innovators could test new products in concert with financial regulators.
The concept of financial sandboxes (or Fintech Sandboxes) was pioneered by the UK, where support of Fintech has been an important policy objective. Firms that participate in these environments may go on to become regulated entities.
Chairman of the Financial Services Committee, French Hill, said they must understand AI as it will touch all aspects of our lives:
“The Unleashing AI Innovation in Financial Services Act ensures that federal financial agencies allow the companies they oversee to experiment with AI through regulatory sandboxes. Our Committee looks forward to exploring AI and its uses in the financial services industry. We are committed to fostering innovation and collaboration between the public and private sectors. I’m grateful to my bipartisan House colleagues and to Senator Mike Rounds for leading this effort in the Senate. Advancing this bill is key to keeping the U.S. at the forefront of AI innovation in financial services.”
Representative Bryan Steil, the Chairman of the Digital Assets, Fintech, and AI Subcommittee, added:
“The United States must lead in artificial intelligence while responsibly addressing the risks that come with emerging technologies. Our Unleashing AI Innovation in Financial Services Act will ensure that we are able to develop this technology responsibly and safely, protecting consumers, and allowing the U.S. to win the tech race.”
The legislation has garnered bipartisan support, with multiple Democrats signing up to back the bill.
Representative Richie Torres, a Democrat, stated:
“In the face of rapid AI advancement, Congress has a responsibility to ensure responsible innovation that protects consumers, strengthens our economy, and maintains American leadership. I’m proud to co-lead this bipartisan, bicameral effort alongside Congressman French Hill to create AI Innovation Labs, giving regulators a safe and structured way to engage with cutting-edge technologies. This bill ensures that innovation and oversight go hand in hand.”
The text of the legislation was not immediately available with a brief summary stating its goal is to “establish AI Innovation Labs that permit certain persons to experiment with artificial intelligence without expectation of enforcement actions.”