Wall Street’s AI Gambit Fuels Call for US Congressional Scrutiny

Wall Street’s embrace of artificial intelligence poses acute risks to the US financial system and demands more congressional scrutiny, according to a key Democratic lawmaker.

Maxine Waters, the top Democrat on the House Financial Services Committee, warned that financial firms’ use of the technology could lead to more discrimination in lending. She also called on the panel’s chairman, Republican Patrick McHenry, to urgently hold a hearing on generative AI, which creates content such as images and text based off a user’s prompt. Waters said those tools may lead to data leaks and the spread of misinformation.

Representative Maxine Waters, a Democrat from California, left, speaks with Representative Patrick McHenry, a Republican of North Carolina

Photographer: Ting Shen/Bloomberg

“The ...