Artificial Intelligence (AI) innovation labs would be established to permit certain persons to experiment with AI without expectation of law enforcement actions under a bipartisan, bicameral bill offered on July 29 by U.S. Reps. French Hill (R-AR) and Bryan Steil (R-WI) and U.S. Sen. Mike Rounds (R-SD).
The Unleashing AI Innovation in Financial Services Act, H.R. 4801 / S. 2528, aims to promote AI in financial services through regulatory sandboxes for AI test projects at federal financial regulatory agencies, according to a bill summary provided by the lawmakers.
“The financial services industry has been using AI for decades, but companies must have the opportunity to innovate as major advancements continue to develop,” Sen. Rounds said. “The Unleashing AI Innovation in Financial Services Act is designed to foster innovation and economic growth by providing a controlled environment where new financial products and services that use AI can be tested.
“By creating these innovation labs, we aim to strike a balance between encouraging innovation and maintaining consumer protection, ultimately strengthening our financial system and keeping our country at the forefront of global financial technology,” added Sen. Rounds, who sponsored S. 2528 alongside three original cosponsors, including U.S. Sens. Thom Tillis (R-NC) and Martin Heinrich (D-NM).
Rep. Hill, chairman of the U.S. House Financial Services Committee, sponsored H.R. 4801, also with three original cosponsors, including Rep. Steil and U.S. Rep. Richie Torres (D-NY).
“As AI continues to evolve, we must understand its full impact because it will touch every part of our lives,” said Rep. Hill. “The Unleashing AI Innovation in Financial Services Act ensures that federal financial agencies allow the companies they oversee to experiment with AI through regulatory sandboxes.”
The congressman said his committee looks forward to exploring AI and its uses in the financial services industry, and members are committed to fostering innovation and collaboration between the public and private sectors.
“I’m grateful to my bipartisan House colleagues and to Sen. Mike Rounds for leading this effort in the Senate,” he said. “Advancing this bill is key to keeping the U.S. at the forefront of AI innovation in financial services.”
Rep. Steil also pointed out that the United States must lead in AI while responsibly addressing the risks that come with emerging technologies, and noted that the proposed bill “will ensure that we are able to develop this technology responsibly and safely, protecting consumers, and allowing the U.S. to win the tech race.”