Bill Summary
This legislation requires several government agencies involved in regulating the financial services industry to submit a report to Congress on their understanding and use of artificial intelligence (AI). The report must include information on the tasks being assisted or completed with AI, current governance standards and oversight for AI, potential need for additional regulatory authorities, potential overlapping issues between agencies, current and future plans for using AI, and necessary resources for adapting to AI and overseeing its use. The legislation also states that the agencies are not required to include confidential information in their reports.
Possible Impacts
1. The legislation could affect people who work in the financial services industry, as it requires them to report on their use of artificial intelligence and potential gaps in knowledge related to this technology. This could lead to changes in their job responsibilities and potentially even job loss if their use of artificial intelligence is found to be inadequate.
2. The legislation could also affect consumers of financial services, as it requires the agencies to report on how they plan to use artificial intelligence and the expected impact on their operations. This could lead to changes in the way financial institutions use artificial intelligence to make decisions, potentially affecting the products and services offered to consumers.
3. Additionally, the legislation could affect government agencies, as it requires them to analyze the potential regulatory issues that may arise from the use of artificial intelligence and report on any additional regulatory authorities they may need. This could lead to changes in the way these agencies monitor and regulate the financial services industry, potentially affecting their budgets and staffing.
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 4870 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
2d Session
S. 4870
To require reports on artificial intelligence regulation in the
financial services industry.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 30, 2024
Mr. Rounds (for himself, Mr. Schumer, Mr. Heinrich, and Mr. Young)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To require reports on artificial intelligence regulation in the
financial services industry.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. REPORT ON ARTIFICIAL INTELLIGENCE REGULATION IN FINANCIAL
SERVICES INDUSTRY.
(a) In General.--Not later than 90 days after the date of enactment
of this Act, each of the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation, the Office of the
Comptroller of the Currency, the National Credit Union Administration,
and the Bureau of Consumer Financial Protection shall submit to the
Committee on Banking, Housing, and Urban Affairs of the Senate and the
Committee on Financial Services of the House of Representatives a
report on the gap in knowledge of the agency relating to artificial
intelligence, including an analysis on--
(1) which tasks are most frequently being assisted or
completed with artificial intelligence in the institutions the
agency regulates;
(2) current governance standards in place for artificial
intelligence use at the agency and current standards in place
for artificial intelligence oversight by the agency;
(3) potentially additional regulatory authorities required
by the agency to continue to successfully execute the mission
of the agency;
(4) where artificial intelligence may lead to overlapping
regulatory issues between agencies that require clarification;
(5) how the agency is currently using artificial
intelligence, how the agency plans to use such artificial
intelligence the next 3 years, and the expected impact,
including fiscal and staffing, of those plans; and
(6) what resources, monetary or other resources, if any,
the agency requires to both adapt to the changes that
artificial intelligence will bring to the regulatory landscape
and to adequately adopt and oversee the use of artificial
intelligence across the operations described in paragraph (5).
(b) Rule of Construction.--Nothing in this section may be construed
to require an agency to include confidential supervisory information or
predecisional or deliberative nonpublic information in a report under
this section.
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