Federal Financial Agencies Seek Comments On Use Of Artificial Intelligence - AI Summary

In the latest, five US federal agencies are seeking input on how financial institutions are using AI tools. These financial agencies recognize and acknowledge the benefits of AI, noting that AI tools have the potential to augment business decision-making and enhance services available to consumers and businesses. While there are certainly benefits, the agencies recognize that use of AI tools are not without risks, including operational vulnerabilities, cyber threats, heightened consumer protection issues, and privacy concerns. While signaling that they may create more guidance, the agencies point out that there are currently many regulations that govern use of AI tools. This request for comment gives financial institutions an opportunity to bring the benefits and challenges from the use of AI to regulators' attention.