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Lawmakers Study AI in Financial, Housing Sectors

A proposed bill requires regulators to report on AI risks and benefits in financial and housing markets, with regulatory and legislative recommendations.

WASHINGTON — The top lawmakers on the House Financial Services Committee introduced a bill that would direct regulators to study the potential benefits and risks of artificial intelligence in the financial and housing markets and propose possible regulations. The lawmakers also introduced a related resolution that, among other things, states the committee should 'play a leading role' in overseeing AI adoption in both industries.

The bill, by committee Chairman Patrick McHenry (R-N.C.) and ranking Member Maxine Waters (D-Calif.), would require regulators to draft four reports on the use of AI. They include a report on the risk and benefits of the technology for banks and credit unions as well as on using the technology to secure the U.S. financial system from national security threats. The reports would be required to include regulatory proposals and legislative recommendations.

“Artificial intelligence holds the promise to revolutionize our financial system,' said McHenry, who is leaving Congress at the end of his current term. 'As firms increasingly leverage AI, lawmakers and regulators tasked with oversight of the financial services industry must constantly evaluate the risks and benefits this technology poses.”

The committee is scheduled to hold a hearing Wednesday on technological innovation in the financial services sector.

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