On January 11, 2024, the House Financial Services Committee announced the formation of a bipartisan Working Group on Artificial Intelligence (“AI”). The working group is to be led by the Chairman of the Digital Assets Financial Technology and Inclusion Subcommittee, French Hill, along with the Subcommittee ranking member Stephen Lynch. This group is designed to address a number of the directives contained in President Biden’s Executive Order on AI issued in October 2023.
The Group will focus on AI’s impact on the financial services and housing industries. A core purpose will be to educate Committee members as to both the potential risks and benefits of AI. Also, it will strive to help the Committee find ways to “leverage AI to foster a more inclusive financial system.” Specifically, the group will explore “the development of new products and services, fraud prevention, compliance efficiency, and the enhancement of supervisory and regulatory tools, as well as how AI may impact the financial services workforce.”
The creation of this group coincides with similar AI efforts by federal agencies, including the FTC and FCC, as well as state agencies such as the California Privacy Protection Agency. It also immediately follows the European Union’s passage of its comprehensive AI legislation, the EU AI Act. Entities seeking to develop or implement AI tools will have to remain vigilant to stay on top of the rapid regulatory developments in this field.