April 8, 2021
Inviting feedback from industry and academia until 1 June
The US Treasury Department, the Federal Reserve, and the National Credit Union Administration are among government agencies seeking information from stakeholders on how financial institutions are using AI tools.
Five agencies are seeking comments to further their understanding of the scope of AI applications deployed in financial services.
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The agencies said the comments will be used to determine appropriate governance, risk management, and controls for AI tools in the sector.
Data quality and data processing, cyber security, and the role of third parties in software development are among the areas of particular interest, along with dynamic updates, explainability, and fairness in lending.
Some regulations that govern the use of AI tools in finance are already in place, with the Fair Credit Reporting Act, Section 5 of the FTC Act, and Sections 501 and 505(b) of the Gramm-Leach-Bliley Act covering prohibition of ‘unfair methods of competition’ and safeguards for customer information.
While signaling that they may create more guidance, the agencies have asked for opinions on how existing regulations impact and address AI-based tools in financial services.
Those looking to participate have until 1 June to share their thoughts. Interested parties are encouraged to submit written comments jointly to all the listed agencies here.