Bipartisan Working Group Highlights HFS Role in AI Oversight

In a bipartisan report, the House Financial Services Committee's ("HFS") AI Working Group considered the role of the Committee as to the development and integration of AI in the economy.

The report derived from a series of separate roundtable discussions on capital markets, housing and insurance, financial institutions and nonbank firms and national security. The Working Group also conducted discussions with federal regulators.

The Working Group recommended that:

• the HFS should take a leading oversight role in how the financial services and housing industries adopt AI.
• the HFS "must ensure that regulators apply and enforce existing laws, including anti-discrimination laws" and other mandates.
• the HFS should ensure that "regulators assess regulatory gaps as market participants adopt AI."
• the HFS should work with financial regulators to ensure that regulators have the "[a]ppropriate" focus and tools to monitor developments. This includes exploring the "potential benefits of a chief AI officer at each financial regulator to oversee the respective agency’s approach to AI including risk mitigation processes."
• the HFS should continue to review existing data privacy laws that apply to financial institutions and financial data, and should continue to consider how federal laws can be amended to "strengthen data privacy protections."
• the HFS should collaborate with financial regulators to assess the impacts that AI may have on the workforce.
• the HFS should "ensure U.S. global leadership on AI development and use."