A new report from the U.S. Department of the Treasury identifies potential opportunities and risks for artificial intelligence (AI) on the security and resiliency of the financial services sector. The report covers multiple ways to address AI related changes, including:
- Close the gap for in-house AI use and fraud data between large and small institutions;
- Address “regulatory fragmentation” for AI;
- Expand the National Institute of Standards and Technology AI risk management framework;
- Create best practices for data supply chain mapping;
- Make AI systems more transparent;
- Address gaps in human capital;
- Create a common AI lexicon;
- Untangle digital identity solutions to help financial institutions combat fraud and strengthen cybersecurity; and
- Gather international coordination.
“In the coming months, Treasury will work with the private sector, other federal agencies, federal and state financial sector regulators, and international partners on key initiatives to address the challenges surrounding AI in the financial sector,” Treasury stated. “While this report focuses on operational risk, cybersecurity, and fraud issues, Treasury will continue to examine a range of AI-related matters, including the impact of AI on consumers and marginalized communities.”
America’s Credit Unions wrote to the Senate Banking Subcommittee on Housing, Transportation, and Community Development in January to request the committee “encourage regulators to understand how AI risks can be addressed through the application of existing laws and regulations, which are not limited to any particular mode of decision making or technology.” The organization continues to engage the Treasury and advocate for responsible AI use.
