- Five financial regulatory agencies seeking public comment on the use of artificial intelligence in financial institutions
- AI associated with both benefits and risks in financial transactions
- Agencies looking for broad range of input on the topic from financial institutions as well as other stakeholders and the general public
Summary by Dirk Langeveld
A group of five financial regulatory agencies are seeking comments on a broad range of issues involving the use of artificial intelligence in financial transactions.
The agencies are looking from input from financial institutions, trade organizations, consumer groups, and other stakeholders. They are also taking comments from the general public.
In a summary of the issue, the agencies said financial institutions currently use AI to flag unusual transactions, provide personalized customer services such as chatbots, make credit decisions, and to provide risk management, textual analysis, and cybersecurity. Potential benefits include cost savings, improved efficiency, and better performance. The risks of using AI, which are often not unique to the technology, include operational vulnerabilities, cyber threats, and greater consumer risks including unlawful discrimination.
The request for comments aims to better understand how financial institutions use AI, including machine learning; appropriate governance, risk management, and controls over AI; challenges in developing, adopting, and managing artificial intelligence; and whether any additional clarification would be helpful.
The Federal Reserve Board, Consumer Financial Protection Bureau, Federal Deposit Insurance Corporation, National Credit Union Administration, and the Office of the Comptroller of the Currency are soliciting the feedback. Comments will be accepted for 60 days after the request for information is published in the Federal Register.
