In a letter to the Office of Management and Budget, the American Bankers Association called for regulatory clarifications that would facilitate the adoption of artificial intelligence technologies by banks. The association’s letter came in response to a recent memo from OMB, which outlined a principles-based approach to regulating AI technology.
ABA supported this approach, noting that it would help “provide a flexible framework for the use of AI that promotes innovation while ensuring that emerging risks are captured.” ABA emphasized that such risks are already accounted for under existing banking regulations, and urged bank regulators to focus on clarifying rules and working together to ensure a consistent regulatory framework.
“Since banks often have more than one regulator, they are only as innovative as their least innovative regulator,” ABA said. “A coordinated approach will give banks clarity about how to implement new technologies and confidence to move forward.”
ABA outlined several specific steps that the banking agencies could take to promote the responsible adoption of AI technologies, including establishing pilot programs, providing consistent and comprehensive guidance on AI and alternative data, ensuring strong consumer data protections, ensuring community banks have the tools to adopt AI and other technologies and ensuring consistent oversight.