AI Issues in Financial Services Covered by Older Laws, Banks Say

Federal regulators already have the tools to oversee the use of artificial intelligence in financial services, consumer advocates and industry groups told the Treasury Department, but the two sides differ on how those tools should be applied.

Banks, fintechs, asset managers, brokerages, and insurance companies are increasingly using AI-based applications to chat with customers and root out fraud, among other uses. While those applications may be on the cutting edge of technology, they’re already covered by existing federal fair lending and anti-money laundering laws and data protection requirements, commenters told the Treasury Department in response to an agency request for ...