U.S. politicians have proposed legislation to explore the impact of artificial intelligence (AI) on the financial and housing industries. Congresswoman Maxine Waters and House Financial Services Committee Chair Patrick McHenry backed the bill, which directs federal authorities to investigate both the positive and negative effects of AI in these industries.
Waters and McHenry’s proposed AI Act of 2024 urges numerous government agencies, including the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC), to investigate how banks use AI. This research will concentrate on issues such as fraud detection, money laundering prevention, and regulatory compliance. Waters emphasized the enormous impact AI already has on mortgage lending and credit scoring, as well as the need for a clearer regulatory framework.
McHenry stressed that these steps are an important first step in maximizing AI’s benefits for consumers, businesses, and regulators. He also pointed out that the increasing prevalence of AI in data management may necessitate the updating of privacy rules to effectively protect individuals.
This endeavor builds on the work of the Bipartisan AI Working Group, which was founded earlier this year to investigate AI’s impact on the financial system. The working group includes both Republican and Democratic members who are all committed to ensuring that AI development in the United States remains secure and helpful to the public. This new regulation indicates their commitment to recognizing and managing the rapid breakthroughs of artificial intelligence in critical economic sectors.
