AI brings opportunities, challenges to credit unions

The Senate Banking Committee’s hearing on artificial intelligence (AI) and its role in the financial services space takes place today. In advance of the hearing, America’s Credit Unions submitted comments outlining ways Congress and regulators can support ongoing credit union innovation.

“Credit unions are seeing firsthand how AI is increasing staff efficiency, automating previously laborious tasks, reducing paperwork, and expediting loan decision making processes,” the letter reads, noting many AI uses to assist members, including fighting fraud, easing compliance, and notifying regulators of potential cyber incidents.

America’s Credit Unions also encourages policymakers to:

• Tailor future AI-related actions in a way that distinguishes between the use of the technology by regulated versus unregulated institutions; 
• 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; and 
• Weigh the regulatory burden on credit unions against the benefit to consumers when implementing new laws and regulations that govern the use of AI in lending and housing.

Read the full letter