Banking Agencies Request Information on Use of AI in Financial Industry
Lawyers from Venable and Mayer Brown in recent memos discuss a Request for Information (RFI) that federal banking agencies issued to the industry and the public regarding the use of artificial intelligence (AI), including machine learning, as part of financial services activities, such as for fraud prevention, personalization of customer services, and credit underwriting. The Federal Reserve Board, Office of the Comptroller of the Currency, FDIC, and other agencies are seeking comments from financial institutions, trade associations, consumer groups, and other stakeholders to better understand industry participants views on a range of issues, including:
- How financial institutions use AI to provide services to customers;
- How financial institutions use AI for business or operational purposes;
- Appropriate governance, risk management, and controls with respect to AI;
- Any challenges in developing, managing, and adopting AI; and
- Whether any clarifications from the agencies would be helpful to ensure that AI use occurs in a “safe and sound manner and in compliance with applicable laws and regulations, including those relating to consumer protection.”
The RFI expresses concern that AI could introduce potential consumer protection risks, including discrimination and privacy concerns. Comments will be accepted until June 1, 2021.