US Congress to scrutinize AI’s impact on financial services

According to the announcement, this bipartisan working group builds on the work of the Task Force on Artificial Intelligence in the 116th and 117th Congresses.

The United States House of Representatives Financial Services Committee (FSC) has formed a working group on artificial intelligence (AI) to explore the impact of AI in the financial services and housing industries.

FSC Chairman, Representative Patrick McHenry and Representative Maxine Waters announced the formation of the bipartisan Working Group on Artificial Intelligence on Jan. 11, 2024. The group is to examine how AI affects the financial services workforce, including creating new products, preventing fraud, improving compliance and enhancing regulatory tools.

#BREAKING: Ranking Member @RepMaxineWaters, Chairman @PatrickMcHenry Announce Creation of Bipartisan Working Group on Artificial Intelligence | https://t.co/ppDHzzmwby pic.twitter.com/D7UNzbHva5

— U.S. House Committee on Financial Services (@FSCDems) January 11, 2024

The group will also review current regulations on AI use and ensure that new regulations consider both AI’s potential benefits and risks. According to the announcement, this effort builds on the work of the Task Force on Artificial Intelligence in the 116th and 117th Congresses.

The new body differs from the group members of the New Democratic Coalition announced on Aug. 15, 2023. While they both share the similar goal of developing bipartisan policies to address this emerging technology, the FSC’s AI working group is bipartisan, involving both Democrats and Republicans.

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Digital Assets, Financial Technology and Inclusion Subcommittee Chairman, Representative French Hill and Representative Stephen Lynch will lead the bipartisan group.

The group’s members include McHenry, Hill and Representatives Young Kim, Mike Flood, Zach Nunn and Erin Houchin of the Republican Party.

Democratic Party members include Waters, Lynch and Representatives Sylvia Garcia, Ayanna Pressley, Sean Casten and Brittany Pettersen.

On Oct. 30, 2023, President Joe Biden issued an Executive Order focusing on AI’s safe development and use. According to the press release, the new group will assess the directives from the Executive Order within the committee’s jurisdiction.