U.S. Banking Regulators Seek How Firms Rely On Artificial Intelligence
WASHINGTON (Reuters) – U.S. banking regulators said Monday they are seeking public input on the growing use of artificial intelligence by financial institutions.
In a joint statement, regulators said they wanted commentary on the use of technology by banks to fight fraud, secure loans and other purposes, as well as the benefits and challenges involved. ‘she presents.
The query was not related to any specific regulatory proposal, but regulators instead said they were seeking public comments to identify areas where it might be useful for agencies to clarify existing rules to address use. of AI.
“Agencies support responsible innovation by financial institutions,” regulators said in the solicitation. “With appropriate governance, risk management and compliance management, the use by financial institutions of innovative technologies and techniques, such as those involving AI, has the potential to increase business decision-making. and improve the services available to consumers and businesses. “
The petition from the Federal Reserve, the Consumer Financial Protection Bureau and other federal financial regulators highlights the growing prevalence of AI in the financial industry, which it could mean for lenders and borrowers.
The far-reaching query calls for answers to traditional banking concerns such as cybersecurity and fair lending, as well as AI-specific issues, such as managing models that dynamically update in response to new data and demand. “Overfitting”, that is, when idiosyncrasies in the data used to train an algorithm may not match an entire population.
In 2018, Fed Vice Chairman Randal Quarles, the central bank’s top regulator, said the central bank was closely monitoring banks’ use of machine learning and wondered if “more specialized” regulatory responses would be needed.
Reporting by Pete Schroeder; Editing by Chris Reese