A bill introduced this week would establish regulatory sandboxes for artificial intelligence test projects at federal financial regulatory agencies. .The Unleashing AI Innovation in Financial Services Act, which has been introduced in the House and Senate, would also let financial institutions test AI-facilitated products and services without the instant risk of enforcement action as long as they meet consumer protection, national security and transparency standards. Agencies included in the bill include the FDIC, Federal Reserve, Securities and Exchange Commission, Office of the Comptroller of the Currency, Consumer Financial Protection Bureau, National Credit Union Administration and Federal Housing Finance Agency. In the Senate, South Dakota Republican Mike Rounds reintroduced the bill along with co-sponsor Sen. Martin Heinrich, a Democrat from New Mexico. The bill was introduced in the House by Financial Services Chair French Hill, a Republican from Arkansas; Richie Torres, a Democrat from New York; Bryan Steil, a Republican from Wisconsin; and Josh Gottheimer, a Democrat from New Jersey. “When it comes to artificial intelligence, we need smart safeguards in place to protect consumers, prevent abuse and ensure our families and financial systems are safe,” Gotthmeier said. The House and Senate have introduced a separate bill intended to combat AI-enabled fraud. The Preventing Deep Fakes Act would launch the Task Force on Artificial Intelligence in the Financial Services Sector, which would report to Congress on topics related to AI in the financial services industry.
