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ARTICLE · 06 APRIL 2021

Federal Financial Agencies Seek Comments On Use Of Artificial Intelligence

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Artificial intelligence continues to remain a focus in 2021, as we predicted at the start of the year.

United StatesTechnology
Julia K. Kadish
Julia K. Kadish
Liisa Thomas
Liisa Thomas
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Artificial intelligence continues to remain a focus in 2021, as we predicted at the start of the year. From the FTC, to the EU, to others, regulators of all kinds are paying attention to companies' use of these tools. In the latest, five US federal agencies are seeking input on how financial institutions are using AI tools. Comments from stakeholders are due by June 1, 2021.

These financial agencies recognize and acknowledge the benefits of AI, noting that AI tools have the potential to augment business decision-making and enhance services available to consumers and businesses. These tools, they note, are used by financial services firms for things like flagging suspicious transactions and personalizing customer services. While there are certainly benefits, the agencies recognize that use of AI tools are not without risks, including operational vulnerabilities, cyber threats, heightened consumer protection issues, and privacy concerns.

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