The Treasury Department released a request for information on the uses, opportunities, and risks of artificial intelligence (AI) in the financial services sector.
The Treasury is seeking public comment on the uses of AI in the financial services sector and the opportunities and risks presented by developments and applications of AI within the sector.
In its 2023 annual report, the Financial Stability Oversight Council (FSOC) noted that the use of AI can correspond with safety and soundness risks like cyber and model risks, and recommended monitoring AI developments to mitigate emerging risks while also facilitating efficiency and innovation.
The request for information observes that some emerging AI technologies “may create a human capital shortage in financial institutions, where sufficient knowledge about a potential risk or bias of those AI technologies may be lacking.” The request seeks comment on issues related to model explainability and “potential obfuscation of model bias.”
Members of the public, including credit unions, credit union service organizations, and third-party vendors, are encouraged to submit comments to the Treasury within 60 days following publication of the notice in the Federal Register.
America’s Credit Unions previously responded to the White House’s October 2023 Executive Order on AI, noting credit unions must have confidence that innovation in AI will not be hindered by overregulation.
