Several Federal financial regulatory agencies published a request for information (RFI) today looking to learn more about financial institutions’ use of AI, challenges when using the technology, and risk mitigation practices.
The request for information was published in the Federal Register by the Board of Governors of the Federal Reserve System, Bureau of Consumer Financial Protection, Federal Deposit Insurance Corporation, National Credit Union Administration, and Office of the Comptroller of the Currency.
“The purpose of this request for information (RFI) is to understand respondents’ views on the use of AI by financial institutions in their provision of services to customers and for other business or operational purposes; appropriate governance, risk management, and controls over AI; and any challenges in developing, adopting, and managing AI,” the RFI states.
The RFI also provides an opportunity for financial institutions to ask the agencies to clarify any questions they have regarding the safe use of AI, or if any laws or regulations would help the institutions to better use AI or protect consumers.
“With appropriate governance, risk management, and compliance management, financial institutions’ use of innovative technologies and techniques, such as those involving AI, has the potential to augment business decision-making, and enhance services available to consumers and businesses,” the RFI says. “AI has the potential to offer improved efficiency, enhanced performance, and cost reduction for financial institutions, as well as benefits to consumers and businesses.”
While AI has a number of benefits, the RFI also notes that financial institutions should have a process “for identifying and managing potential risks associated with AI, as they do for any process, tool, or model employed.”
The RFI asks 17 questions to better understand financial institutions’ use of AI and risk mitigation processes. Comments are due on June 1, 2021.