AI in Financial Services: US Congress Sets Its Sights on Examining the Impact of AI in Financial Services

The United States House of Representatives Financial Services Committee (FSC) has established a working group on artificial intelligence (AI) to delve into the impact of AI in the financial services and housing industries.

AI in Financial Services: US Congress Sets Its Sights on Examining the Impact of AI in Financial Services

FSC Chairman, Representative Patrick McHenry, and Representative Maxine Waters announced the formation of the bipartisan Working Group on Artificial Intelligence on January 11, 2024. The group aims to explore how AI affects the financial services workforce, including the creation of new products, fraud prevention, compliance improvement, and regulatory tools enhancement. The group will also review current regulations on AI usage and ensure that new regulations consider both the potential benefits and risks of AI. According to the announcement, this effort builds on the work of the Task Force on Artificial Intelligence in the 116th and 117th Congresses.

The new body differs from the group members of the New Democratic Coalition announced on August 15, 2023. While they both share the similar goal of developing bipartisan policies to address this emerging technology, the FSC’s AI working group is bipartisan, involving both Democrats and Republicans.

Digital Assets, Financial Technology, and Inclusion Subcommittee Chairman, Representative French Hill, and Representative Stephen Lynch will lead the bipartisan group.

The group’s members include McHenry, Hill, and Representatives Young Kim, Mike Flood, Zach Nunn, and Erin Houchin of the Republican Party.

Democratic Party members include Waters, Lynch, and Representatives Sylvia Garcia, Ayanna Pressley, Sean Casten, and Brittany Pettersen.

On October 30, 2023, President Joe Biden issued an Executive Order focusing on AI’s safe development and use. According to the press release, the new group will assess the directives from the Executive Order within the committee’s jurisdiction.