Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, delivered the following statement during a full Committee hearing entitled, “From Principles to Policy: Enabling 21st Century AI Innovation in Financial Services.”
“Thank you very much, Mr. Chairman. AI is already embedding in the lives of millions of Americans, and we have a duty to ensure that it benefits society, not harms it.
Unfortunately, Republicans have been complicit as Donald Trump bypasses Congress, directs federal agencies to deploy biased AI with no safeguards, and now issuing an executive order that seeks to undermine all state oversight.
Republicans in Congress fail to acknowledge that despite all the benefits that AI may bring, it also poses challenges that demand our full attention. We are already seeing AI systems that hurt children, spread hate and discrimination, and amplify systemic risk in the financial system. As unemployment reaches new heights, reports continue to show AI replacing workers across industries. That’s why the Biden Administration put in critical protections to ensure AI systems are transparent, explainable, and non-discriminatory. These are just basic safeguards to keep families and children safe. In some of the worst cases, chatbots have encouraged self-harm like suicide, carried out sexually explicit conversations, and even provided dangerous misinformation and disinformation to minors.
But no one should be surprised that the same President who calls affordability a hoax is ignoring these very real concerns with AI. Twice this year, the White House and Congressional Republicans have tried—and failed—to impose a moratorium on state AI laws. And now, despite those failures, Trump announced he would sign an Executive Order that would block states from adopting their own AI safeguards by threatening legal challenges and withholding federal funding.
And for this hearing, Republicans posted a bill that would give AI and its Big Tech creators a pass when they violate consumer, housing, banking or securities laws. Democrats are not going to sit by and watch Trump and Republicans allow Big Tech to forcibly experiment on our communities. Any legislative efforts by Congress must ensure that consumers and investors understand the AI they are interacting with in the financial services space, while giving companies meaningful standards they can innovate under.
A partisan approach is not necessary if Republicans fight for their constituents. Last Congress, I and then-Chair McHenry launched the first-ever bipartisan AI Task Force. We held joint sessions, conducted oversight, and introduced bills to confront AI bias, deepfake scams, and discrimination—proving that innovation and oversight can go hand-in-hand.
Democrats are leading these efforts because we believe in responsible innovation. The stakes are too high, the risks are too great, and the consequences too real to hand this technology over to Big Tech billionaires with no guardrails and no accountability.
Thank you, and I yield back.”
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