Ahead of a hearing to examine how technology is shaping the future of finance, Reps. Maxine Waters and Patrick McHenry, Chairman of the House Financial Services Committee, have introduced two bipartisan measures highlighting the impact of artificial intelligence (AI) on the financial services and housing industries.
Ranking Member Waters introduced a measure, H.R. 10262, co-sponsored by Chairman McHenry, directing the federal financial regulators to study the present and potential benefits and risks of AI as it relates to the financial and housing markets. In addition, Chairman McHenry introduced a resolution, H. Res. 1600, cosponsored by Ranking Member Waters, acknowledging the growing use of AI in the financial services and housing industries.
“Artificial Intelligence is growing rapidly, and people across America are already seeing its use in our nation’s housing and financial services sectors, with impacts on mortgage lending, credit scoring, and more,” said Rep. Waters. “I am so proud to partner with Chair McHenry to introduce these two bipartisan bills, which continue the Committee’s leadership in examining and understanding the impact this technology has on people. Our Committee will continue to collaborate closely with the federal government to identify the risks and benefits of AI and to explore further legislation needed to protect people and our communities. I am grateful for the extensive work the Chair has done with me this Congress to build on what I and my Democratic colleagues started several years ago. I look forward to passing these bills and continuing to work in a bipartisan manner on this important issue next Congress.”
Both AI-related measures build upon the efforts of the Committee’s Bipartisan AI Working Group to identify the advantages and risks of the technology, as well as the impacts of existing laws and regulations on its adoption.
The bipartisan AI Working Group is tasked with exploring how AI is impacting the financial services and housing industries, including 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 Working Group also examines how existing regulation addresses the use of AI and how lawmakers can ensure that any new regulations consider both the potential benefits and risks associated with AI.
“Artificial intelligence holds the promise to revolutionize our financial system,” said Chairman McHenry. “As firms increasingly leverage AI, lawmakers and regulators tasked with oversight of the financial services industry must constantly evaluate the risks and benefits this technology poses. These bills are a small, but critical, step forward to empower the financial system to realize the numerous benefits artificial intelligence can offer for consumers, firms, and regulators. I appreciate Ranking Member Waters for her partnership on this effort.”
Click here to read the full text of Rep. Waters’ H.R. 10262, and click here to read the full text of Rep. McHenry’s H. Res. 1600.
