The U.S. Department of the Treasury has released a report offering recommendations based on comments to a Request for Information (RFI) on the uses, opportunities, and risks of artificial intelligence (AI) in financial services.
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The report discusses the growing use of AI and generative AI across the financial services industry. It also highlighted AI’s potential to expand opportunities while amplifying certain risks, such as risks related to data privacy, bias and third-party vendors.
“Through this AI RFI, Treasury continues to collaborate with stakeholders to deepen its understanding of the current uses, opportunities, and risks associated with AI in the financial sector,” said the Under Secretary for Finance. domestic finance, Nellie Liang. “The Biden Administration believes that continued stakeholder engagement like this is important to fostering innovation in financial services while mitigating potential risks.
Additionally, it outlines potential next steps for consideration by Treasury, government agencies and the financial services industry. Recommendations include:
- Continue international and domestic collaboration between governments, regulators and the financial services sector to promote consistent and robust standards for the use of AI in the financial services sector;
- Further analysis and stakeholder engagement to explore solutions to possible gaps in existing regulatory frameworks and to address the potential risk of AI causing harm to consumers;
- Coordination between financial regulators to identify potential improvements to existing risk management frameworks and collaboration between government agencies to clarify expectations for oversight on the application of frameworks and standards, where applicable;
- AI information sharing, alongside the AI Cybersecurity Forum recommended in the Treasury’s AI Cybersecurity Report, to develop data standards, share risk management best practices and improve understanding emerging AI technologies in financial services; And
- Prioritize the review of AI use cases by financial firms for compliance with applicable laws and regulations before deployment.
The AI RFI took place on June 12, 2024. It received 103 comment letters in response to various stakeholders, including financial companies, consumer advocacy groups, technology providers, fintech companies, professional associations and consulting companies.