WASHINGTON — The federal bank and credit union regulators are seeking information about how financial institutions use artificial intelligence to serve customers and whether additional guidance from the agencies is necessary.
The Federal Reserve, Federal Deposit Insurance Corp., Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and the National Credit Union Administration on Monday requested information on how companies use artificial intelligence for fraud prevention, personalization of customer services, credit underwriting, and other operational purposes.
The regulators said AI has the "potential to offer improved efficiency, enhanced performance, and cost reduction for financial institutions, as well as benefits to consumers and businesses," according to the request for information. But they also recognized potential risks associated with artificial intelligence, including a heightened risk of unlawful lending discrimination.
"The RFI also solicits respondents’ views on the use of AI in financial services to assist in determining whether any clarifications from the agencies would be helpful for financial institutions’ use of AI in a safe and sound manner and in compliance with applicable laws and regulations, including those related to consumer protection," the agencies said.
The agencies said that they are looking to better understand the appropriate risk management controls that firms should put in place when employing artificial intelligence, as well as any challenges firms face in developing, adopting and managing artificial intelligence.
Comments will be due 60 days after the RFI is published in the Federal Register.
