UPDATE — AUGUST 2025: Since this story’s original publication, the Treasury has released a comprehensive report on December 19, 2024. The report summarized 103 stakeholder responses and outlined next steps.
Key themes included the use of AI in credit underwriting, fraud detection, and compliance. Stakeholders also raised concerns about algorithmic bias, data privacy, and cybersecurity. In response, the Treasury recommended stronger regulatory coordination, new risk mitigation strategies, and enhanced oversight practices.
The agency has since issued follow-up reports on AI-related cybersecurity. It continues to consult stakeholders as it builds AI-specific supervisory frameworks. The process remains iterative, aiming to balance innovation with consumer and financial system protections.
ORIGINAL NEWS STORY:
U.S. Treasury Seeks Public Insight on AI in Financial Services
In a significant move towards understanding and potentially regulating artificial intelligence (AI) within the financial sector, the U.S. Department of the Treasury announced a new Request for Information (RFI) focused on the uses, opportunities, and risks of AI technologies in financial services. This request, made on June 6, aligns with the Treasury’s ongoing efforts to integrate responsible innovation within financial institutions while safeguarding the broader economic landscape.
Under Secretary for Domestic Finance, Nellie Liang, emphasized the initiative’s role in the Biden Administration’s broader strategy to balance innovation with consumer and systemic protections. “As we continue to witness rapid advances in AI, it’s imperative that our regulatory frameworks keep pace,” Liang stated. “We are dedicated to fostering a financial environment that not only drives technological advancements but also maintains robust protections for consumers and our financial system.”
Focus of the RFI
The Treasury wants perspectives on practical applications of AI in finance, along with the challenges it introduces. Key topics include cybersecurity, privacy, and equity. Officials are also exploring how AI can expand access to credit and promote financial inclusivity. The agency is studying how financial institutions currently use AI. Examples include automated loan decisions, fraud detection tools, and asset management systems. Feedback will guide updates to laws and supervisory frameworks so they address the unique complexities of AI in finance.
Call for Participation
Treasury has invited input from financial institutions, consumer advocates, technology experts, and academics. Stakeholders are encouraged to share obstacles to responsible AI use, the impact of AI on consumers and businesses, and whether existing regulations are sufficient. Comments submitted through the Federal eRulemaking Portal at www.regulations.gov will remain publicly available. This open process is designed to build transparency and encourage dialogue on AI’s role in finance.
Why It Matters
The RFI comes as AI reshapes industries worldwide. In finance, AI is driving efficiency and innovation but also creating new ethical, privacy, and security risks. Treasury officials say quick action is needed to prevent abuses and ensure AI benefits all Americans. Stakeholders have 60 days from the June 6 announcement to respond. The tight deadline underscores how urgently regulators want to stay ahead of technological change.
Need Help?
Keeping track of the everchanging AI financial services landscape can be tough, especially if you have questions and concerns about how it will impact you. Don’t hesitate to reach out to BABL AI. Their Audit Experts are ready to provide valuable assistance.
