Hill leads new bipartisan AI task force on mission to foster innovation in financial sector

The simulation of human intelligence processes by computer systems is not without both benefits and challenges, said U.S. Rep. French Hill (R-AR), ranking member of the U.S. House Financial Services Committee Task Force on Artificial Intelligence (AI), during its first meeting on Wednesday.

“Over the next few months, I look forward to working with my colleagues on both sides of the aisle to find ways to foster innovation through the use of artificial intelligence for both disruptive innovators and incumbent financial players, small and large,” the congressman said during the hearing, entitled “Perspectives on Artificial Intelligence: Where We Are and the Next Frontier in Financial Services.”

Rep. Hill pointed out that financial institutions are already experimenting with AI resources to streamline their compliance with various rules and requirements, as well as for fraud detection, real estate valuations, and to reduce cost levels.

AI also can create better efficiencies for underwriting and reaching underbanked communities, the lawmaker said. “Algorithmic-driven lending is proliferating online and transforming everything from personal loans to small-business borrowing,” he added.

Yet on the other hand, “the use of artificial intelligence and machine learning is not without its challenges and questions — just like any other technology advancement,” Rep. Hill said. “As policymakers, we need to ensure we are asking the right questions about appropriate testing and evaluating this new technology, so it ultimately benefits the end consumer.”

Another challenge facing the use of AI is the potential for job loss.

“I’m sure this topic will arise as we move through these hearings,” said the congressman, who added that he thinks people may be putting the cart before the horse on the number of displaced jobs.

“I start this journey in the ‘cup half full’ camp and am optimistic about our future,” he said.