The Treasury Department today issued a request for information on the use of artificial intelligence in the financial services sector. Specifically, the department is seeking public input on the current use of AI by financial institutions and other actors in the sector. It is also seeking comment on the opportunities and risks presented by developments and applications of the technology.
The request was released the same day the Financial Stability Oversight Council and Brookings Institution kicked off a two-day conference on AI and financial stability. In opening remarks at the conference, Treasury Secretary Janet Yellen said federal regulators are not “seeking to reinvent the wheel” when addressing AI risks. “That said, there are also new issues to confront, and this is a rapidly evolving field,” she said. “We have our work cut out for us and are pursuing a variety of initiatives to identify and address emerging risks.”
In a statement, American Bankers Association President and CEO Rob Nichols said that U.S. banks are leaders in the responsible and innovative use of AI. “Banks deploy AI applications in a mature governance framework and are examined for compliance in areas including model risk, third party risk, consumer protection, and safety and soundness,” he said. Nichols added that ABA looks forward to responding to the request for information and has already worked closely with the department on AI issues. He also noted that the association has provided substantial feedback to the National Institute of Standards and Technology as it updates its AI Risk Management Framework.
