In summary
- The bipartisan AI Bill of 2024 seeks to evaluate the impact of AI on financial services and housing, with an emphasis on existing regulation.
- Federal agencies such as the Federal Reserve and the SEC are directed to evaluate the use of AI in areas such as fraud, credit scoring and mortgage underwriting.
- The legislation also addresses concerns about potential risks such as biased decisions and vulnerabilities to cyber attacks, calling for public consultations to ensure transparency.
Lawmakers are taking a closer look at the influence of artificial intelligence (AI) on critical sectors with the introduction of the AI Act of 2024, a bipartisan bill that seeks to assess the impact of AI on financial services and housing .
Representative Maxine Waters (D-CA) and House Financial Services Committee Chairman Patrick McHenry (R-NC) introduced the bill, directing federal regulators to examine how artificial intelligence is changing these sectors and identify gaps in existing regulation.
“AI is already impacting mortgage lending and credit scoring, among other things,” Waters said in the bill introduced Monday, noting the need for a comprehensive understanding of AI’s potential applications and risks.
McHenry called the legislation “a small but critical step forward in empowering the financial system to realize the many benefits that artificial intelligence can offer consumers, businesses and regulators.”
The bill requires federal agencies such as the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the U.S. Securities and Exchange Commission (SEC) to evaluate the role of artificial intelligence in fraud detection, underwriting mortgage, credit rating and tenant evaluation.
Regulators are being asked to evaluate whether AI-powered processes comply with anti-discrimination laws and how smaller institutions, such as community banks and credit unions, can effectively adopt AI technology.
McHenry’s accompanying resolution noted that artificial intelligence is already changing markets, with applications in market surveillance, mortgage underwriting and real estate management.
However, it also warned of potential drawbacks, such as biased decision-making, increased reliance on third-party tools, and vulnerabilities to cyberattacks.
The resolution suggests that the Financial Services Committee evaluate whether existing privacy laws are sufficient as AI systems increasingly rely on consumer data.
The bill requires federal agencies to submit findings within 180 days and provide recommendations for regulatory or legislative action. It also calls for public consultations to gather input from stakeholders to ensure transparency.
The bill builds on the work of the Committee’s Bipartisan AI Working Group, which has been evaluating the benefits and risks of artificial intelligence and the effectiveness of current laws in regulating its adoption.
“This is about building on years of work to ensure that AI is used responsibly and for the benefit of all Americans,” Waters said. “I look forward to passing these bills and continuing to work in a bipartisan manner on this important issue in the next Congress.”
In June, Representatives Ted Lieu (D-Calif.), Anna Eshoo (D-Calif.), and Ken Buck (R-Colo.) also introduced a bipartisan bill called “Bill HR4223” to establish a federal commission about AI.
“AI is doing incredible things for our society. But it could also cause great harm if left unregulated,” Rep. Ted Lieu tweeted when announcing the bill.
Edited by Stacy Elliott.
Generally Intelligent Newsletter
A weekly AI journey narrated by Gen, a generative AI model.
For the Latest Crypto News, Follow ©KeynoteUSA on Twitter Or Google News.
Disclaimer: Please note that the information provided on this page is for News purposes only and should not be considered investment or trading advice. ©Crypto.keynoteusa.com strongly recommends that you conduct independent research and/or consult with a qualified professional before making any investment decisions.
