Overview (Program Summary)
Regulators and industry participants across the consumer financial services sector are continuing to grapple with the opportunities and risks associated with the sharp rise of artificial intelligence and machine learning (“AI”). U.S. federal financial regulators have yet to implement comprehensive regulations governing AI, and have provided limited guidance as to how existing requirements apply to these emerging technologies. The presenters discussed the increasing regulatory focus on assessing discrimination and potential fair lending risks associated with AI, including recent efforts by the Consumer Financial Protection Bureau to use adverse action requirements to promote greater transparency in AI models and shine a light on risks associated with non-traditional data elements in models used by financial institutions. The presenters also explored implications of the Biden Administration’s recent Executive Order on AI, new legislation and regulatory actions at the state level on AI consumer protections, and related data privacy and cybersecurity issues in the U.S. and from a global perspective. Industry best practices and steps that financial institutions can take to mitigate risks associated with AI were also discussed.
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