Artificial intelligence (AI) remains a priority for U.S. lawmakers and regulators, who continue to grapple with new legislative proposals, as well as a changing regulatory regime designed to prepare the government to interact with issues related to artificial intelligence (AI). ‘IA, while positioning the United States. be a leader in AI innovation. In accordance with 15 USC Ch. 119 And Executive Order 14110two more bipartisan House bills were just introduced to strengthen the government’s response to AI.
The first invoice, HR 1600would direct the House Financial Services Committee (HFSC) to “take a leadership role” in the use of AI in the financial services industry. The second bill, RH 10262 (the “Analysis and Improvement Act of 2024”) would similarly direct federal regulators to study the benefits and risks of AI in their respective fields, such as banking, investments, housing and financial crime. These bills are notable because they were authored by HFSC’s bipartisan leadership, Rep. Patrick McHenry (R. NC) and Rep. Maxine Waters (D. CA), known for their vocal opposition on other issues, but found bipartisan agreement on AI in these two bills, as well as their leadership on the HFSC AI Working Group.
It is worth noting that AI was the subject of the final HFSC committee hearing of this session of Congress last week. During the hearing, several high-profile tech CEOs were present as witnesses, while several lawmakers expressed keen interest in both the transformative benefits and challenges of AI in financial services. It appears lawmakers are torn between preventing problems like AI-enhanced fraud, but also worried about overregulation and a barrier to AI innovation at the broad sense.
Although bipartisan, HR 1600 And RH 10262 However, it is unlikely that they will be adopted in the final days of this Congress. We hope, however, that these proposals will constitute the starting point for the work of the new Congress in January. Additionally, we await the release of a separate, much broader report from the bipartisan committee. Home AI Working Groupwhich we hope will address the potential path forward for AI across all sectors, including financial services.