THE House Financial Services Committee (HFSC) aims to play a role in the development of artificial intelligence (AI) as this technology impacts the financial services and housing sectors.
President of the HFSC Patrick McHenryR-North Carolina and Ranking Member Maxine WatersD-Calif., has introduced bipartisan measures focused on AI and its impact, the HFSC said in a Monday, Dec. 2. press release.
One measure, introduced by McHenry and co-sponsored by Waters, is a resolution (H. Res. 1600) which recognizes the growing use of AI in the financial services and housing industries, according to the release.
“Artificial intelligence promises to revolutionize our financial system,” McHenry said in the release. “As businesses increasingly leverage AI, lawmakers and regulators charged with overseeing the financial services industry must constantly evaluate the risks and benefits this technology presents. »
The second measure, introduced by Waters and co-sponsored by McHenry, is a Invoice (HR 10262) which directs federal financial regulators to study the benefits and risks of AI as they relate to financial and real estate markets, according to the release.
“Artificial intelligence is growing rapidly and people across America are already seeing its use in our nation’s housing and financial services sectors, with impacts on mortgage lending, credit scoring and much more” , Waters said in the release. “I am very proud to partner with Chairman McHenry to introduce these two bipartisan bills, which affirm the Committee’s leadership in examining and understanding the impact of this technology on people.”
The resolution and bill leverage the committee’s bipartisan AI Working Group to evaluate the technology and how its adoption is affected by existing laws and regulations, according to the release.
The task force, established by McHenry and Waters in January, released a report in July stating that artificial intelligence has the potential to expand access to credit, strengthen fraud protection and improve customer service, but also presents challenges around data privacy, potential bias in algorithmic decision-making and the need to ensure that AI systems comply with applicable laws.
When announcing the formation of the task force in January, McHenry and Waters said in a press release that they would study how technology affects the development of new products and services, fraud prevention, compliance, monitoring and regulatory tools, as well as financial services workforce.
