Top lawmakers in the United States introduced a bill that would require federal regulators to conduct studies on how artificial intelligence (AI) impacts the financial services and housing industries.
Congresswoman Maxine Waters introduced a bill directing several federal financial regulators to study the present and potential benefits and risks of AI in the two industries. It was co-sponsored by House Financial Services Committee Chair Patrick McHenry.
The pair have also supported each other in a resolution acknowledging the increasing use of AI in the finance and housing markets, according to a Dec. 2. statement from the House Financial Services Committee.
Under the Waters-sponsored AI Act of 2024, key regulators like the Federal Reserve and the Federal Deposit Insurance Corporation would have to report how banks implement AI to detect and deter money laundering, cybercrime and fraud.
AI is already impacting mortgage lending and credit scoring, among other things, Waters said, explaining the need for a more comprehensive AI reporting regulatory framework.
AI-powered research is also being used for market surveillance purposes and tenant screening, McHenry’s resolution said.
McHenry added: “These bills are a small, but critical, step forward to empower the financial system to realize the numerous benefits artificial intelligence can offer for consumers, firms, and regulators.”
His resolution suggested the House Financial Services Committee should consider whether to reform privacy laws as data use becomes more AI-driven.
McHenry said he wants the US to remain a leader in AI development and utilization.
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Waters and McHenry’s measures build on the House Committee’s Bipartisan AI Working Group, which was established on Jan. 11.
Republican members include French Hill, Young Kim, Mike Flood, Zach Nunn and Erin Houchin, while the Democrat members include Stephen Lynch, Sylvia Garcia, Sean Casten, Ayanna Pressley and Brittany Pettersen.
The group’s formation followed US President Joe Biden’s executive order on Oct. 30 to establish a “Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.”
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