House Financial Services Committee Leaders Considering Push for AI Regulation

Top lawmakers on the House Financial Services Committee are actively addressing the impact of artificial intelligence on the finance and housing sectors. Representatives Patrick McHenry and Maxine Waters announced the introduction of a resolution and bill aimed at understanding and regulating the use of AI in these industries.

This effort is the result of nearly a year of collaboration within the bipartisan AI working group of the committee. The goal is to explore how AI is shaping the future of finance and ensure that the technology is used responsibly and effectively.

According to McHenry, AI has the potential to revolutionize the financial system. As more firms adopt AI, it’s essential for lawmakers and regulators to assess the risks and benefits it presents. The newly introduced resolution and bill are intended to empower the financial system to leverage the benefits of AI for consumers, firms, and regulators.

The resolution outlines the responsibilities of the House Financial Services Committee concerning AI. It covers a range of topics, from how AI is used in housing for underwriting and tenant screening to monitoring the impact of AI on financial institutions and market behavior. The committee aims to ensure that regulatory agencies are equipped to oversee AI usage in these sectors and may consider reforms to data privacy laws in response.

The AI Act of 2024, introduced by McHenry and supported by Waters, requires several financial regulatory agencies to conduct a thorough examination of AI-related issues within their sectors. This includes evaluating AI use in areas such as home valuation, loan servicing, fraud detection, and compliance. Additionally, the bill calls on the Securities and Exchange Commission and the Treasury Department to study the risks and benefits of AI in financial markets and national security.

Waters emphasized the importance of collaborating with federal agencies to understand the risks and benefits of AI in housing and financial services. The goal is to protect individuals and communities while promoting innovation in these sectors.

Overall, these legislative measures represent a bipartisan effort to address the growing prevalence of AI in finance and housing. By studying and regulating AI usage, lawmakers hope to ensure that the United States remains a leader in the responsible development and deployment of AI technologies.