Today, Congresswoman Maxine Waters (CA-43), the top Democrat on the House Financial Services Committee and Chairman Patrick McHenry (NC-10), announced the formation of the Committee’s bipartisan Working Group on Artificial Intelligence (AI), led by Digital Asset, Financial Technology and Inclusion Subcommittee Chairman French Hill (AR-02) and Subcommittee Ranking Member Stephen F. Lynch (MA-08).

The bipartisan AI Working Group will explore how artificial intelligence (AI) is impacting the financial services and housing industries, including firms’ use of AI in decision-making, the development of new products and services, fraud prevention, compliance efficiency, and the enhancement of supervisory and regulatory tools, as well as how AI may impact the financial services workforce. The Working Group will also examine how existing regulation addresses the use of AI and how lawmakers can ensure that any new regulations consider both the potential benefits and risks associated with AI. This Working Group is a continuation of the work conducted by the Task Force on Artificial Intelligence in the 116th and 117th Congresses.

“I’m proud to announce the creation of this bipartisan artificial intelligence Working Group, as I’ve long called on both this Committee and Congress to move quickly to investigate the ways in which this technology may embed historic inequities in the financial services and housing markets through the use of data that reflect underlying bias or discrimination,” said Ranking Member Waters. “With this Working Group, I look forward to building on the work I established when I was Chair and created Congress’ first-ever Task Force on AI, where we held nearly a dozen hearings. I am also eager to get together with my colleagues on both sides of the aisle to examine the benefits and dangers of AI to ensure that this technology does not advance beyond our ability to regulate it, worsen existing inequities, and that consumers are properly protected from harm or abuse.”

“The rapid advance of artificial intelligence technology holds immense promise to transform society and our economy for the better, but it also comes with risks,” said Chairman McHenry. “To help educate members, our Committee is creating a new bipartisan Working Group on AI. The Working Group will explore this technology’s potential, specifically its adoption in our financial system. It will also find ways to leverage artificial intelligence to foster a more inclusive financial system, while establishing the U.S. as the world leader in AI development and terms of use. The House Financial Services Committee will continue to build on our previous bipartisan efforts to chart a thoughtful course for AI’s future in America.”

“As Ranking Member of the Subcommittee on Digital Assets, Financial Technology and Inclusion, I am proud to serve as the lead Democrat on the new bipartisan Working Group on Artificial Intelligence. While financial institutions, financial technology companies, and government agencies are already utilizing artificial intelligence to facilitate the detection of financial crime, risk analysis, personalized customer services, consumer lending, and other critical functions, the evolving application of A.I. technologies must be paralleled by robust federal oversight and a regulatory framework that is adaptive to innovation and equipped to identify potential risks to American consumers. Following the recent determination by the Financial Stability Oversight Council identifying A.I. as an “emerging vulnerability,” I certainly look forward to working with Full Committee Chairman Patrick McHenry, Ranking Member Maxine Waters, Chairman French Hill, and my Working Group colleagues on a bipartisan basis to better ensure that we are advancing responsible A.I. innovation in a manner that maximizes consumer safety and security, data privacy, and financial equity and safeguards the stability of our financial system,” said Congressman Lynch.

“I am pleased that Chairman McHenry is creating a new bipartisan Working Group on Artificial Intelligence, allowing us to explore AI’s potential in the financial system while also ensuring that the United States is a leader in this technology,” said Congressman Hill. “As AI rapidly advances, it is important that we examine its use, need for potential changes in U.S. laws and/or the regulatory framework for both effective oversight, and ensuring global competitiveness. The Working Group is a natural extension of our policy focus on the Digital Assets Subcommittee, and I look forward to building upon our prior Committee exploration from our 2019 – 2022 AI Task Forces.”

Members of the Bipartisan Working Group on Artificial Intelligence:

Democratic Members: Ranking Member Maxine Waters (CA-43), Congressman Stephen F. Lynch (MA-08), Congressman Sean Casten (IL-06), Congresswoman Ayanna Pressley (MA-07) Congresswoman Sylvia Garcia (TX-29), Congresswoman Brittany Pettersen (CO-07).

Republican Members: Chairman Patrick McHenry (NC-10), Congressman French Hill (AR-02), Congresswoman Young Kim (CA-40), Congressman Mike Flood (NE-01), Congressman Zach Nunn (IA-03), Congresswoman Erin Houchin (IN-09).

Background:

• In 2019, one of the first moves then Chairwoman Waters made after assuming the gavel was to establish Congress’ first-ever Task Forces on Financial Technology and Artificial Intelligence. The historic Task Forces held a total of 22 hearings across the 116th and 117th Congress and led the way to encourage equitable and responsible innovation.
  
  
• On June 15, 2023, Ranking Member Waters sent a letter to Chair McHenry (R-NC) urging McHenry to immediately convene a hearing to explore the implications of generative AI on housing and financial services.
  
  
• On August 22, 2023, Ranking Member Waters sent a letter to the Government Accountability Office requesting a study on the use and effects of AI and Property Technologies, such as rent-setting technologies and Automated Valuation Models, on consumers as well as on availability and affordability in the housing market.
  

Additional Background:

On October 30, 2023, President Biden issued an Executive Order on Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence to ensure that America leads the way in seizing the promise and managing the risks of AI. The Bipartisan Working Group on AI will serve as a forum to examine the directives from the Executive Order related to the Committee’s jurisdiction.

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