Responding to a request from the US Treasury, both the Consumer Financial Protection Bureau (CFPB) and the American Fintech Council (AFC) have provided insights on the implementation of AI in financial services.
In its response to the Treasury’s inquiry regarding the uses, opportunities, and risks associated with artificial intelligence in the financial sector, the CFPB emphasizes that regulators have a legal obligation to enforce existing rules in relation to all technologies, including emerging ones like AI.
The CFPB states that some institutions might act as if there are exceptions to federal consumer financial protection laws when it comes to new technologies, but this is not the case. They caution against adopting an “Uber” model of service delivery that ignores legal obligations while waiting for the legal framework to adapt.
On the other hand, the AFC advocates for a “unified and cohesive” regulatory framework to prevent a fragmented approach across different states and to facilitate the use of AI beyond state regulations. Ian Moloney, SVP and head of policy and regulatory affairs at AFC, notes that a unified federal approach would simplify regulatory requirements, offering clarity and consistency that would help financial institutions utilize AI technologies more effectively.
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