Financial Services Republicans Respond to Treasury Request on AI

Outgoing House Financial Services Committee Chairman Patrick McHenry (R-NC) and the six Republican subcommittee chairs sent a letter to U.S. Treasury Secretary Janet Yellen responding to Treasury’s request for information on artificial intelligence (AI). The Republican letter addressed four key topics current and potential uses of AI, bridging the technology gap between large and small firms, data privacy, and a principles-based regulatory approach. The letter urged Treasury to take a “sectorial” approach that “ensures primary regulators, who understand their respective markets and AI use cases within those markets, retain the regulatory authority to proceed in a technology-neutral manner.” The letter further notes, “The potential benefits of AI are vast, and with thoughtful activity-based regulation and collaboration between the public and private sectors, we can harness these benefits to create a more inclusive and efficient financial system for all Americans.” In June, Treasury released a request for information on the “Uses, Opportunities, and Risks of Artificial Intelligence (AI) in the Financial Services Sector” to increase its understanding of how AI is being used within the financial services sector and the opportunities and risks presented by developments and applications of AI.

Click here to read the House Financial Services Republican letter to Treasury on AI.