US Lawmakers Propose AI Impact Study In Finance And Housing

According to Cointelegraph, top lawmakers in the United States have introduced legislation aimed at understanding the effects of artificial intelligence on the financial services and housing sectors. Congresswoman Maxine Waters, alongside House Financial Services Committee Chair Patrick McHenry, has put forward a bill that mandates federal financial regulators to examine both the current and potential impacts of AI in these industries. This initiative is part of a broader resolution acknowledging the growing role of AI in finance and housing. The proposed "AI Act of 2024," sponsored by Waters, requires key regulatory bodies such as the Federal Reserve and the Federal Deposit Insurance Corporation to assess how banks are utilizing AI technologies to combat money laundering, cybercrime, and fraud. Waters emphasized the significant influence AI already has on mortgage lending and credit scoring, highlighting the necessity for a comprehensive regulatory framework to oversee AI reporting. McHenry's resolution further notes the use of AI in market surveillance and tenant screening, underscoring the technology's expanding footprint in these sectors. McHenry described the legislative efforts as a crucial step towards harnessing the benefits of AI for consumers, businesses, and regulators. He also suggested that the House Financial Services Committee should explore potential reforms to privacy laws in response to the increasing reliance on AI-driven data usage. McHenry expressed a desire for the United States to maintain its leadership in AI development and application. These legislative measures are an extension of the House Committee’s Bipartisan AI Working Group, which was established on January 11, 2024. The group includes Republican members such as French Hill, Young Kim, Mike Flood, Zach Nunn, and Erin Houchin, as well as Democrat members like Stephen Lynch, Sylvia Garcia, Sean Casten, Ayanna Pressley, and Brittany Pettersen. The formation of this group followed an executive order by US President Joe Biden on October 30, aimed at ensuring the safe, secure, and trustworthy development and use of artificial intelligence.