U.S. Treasury Seeks Public Insight on AI in Financial Services

Written by Jeremy Werner

Jeremy is an experienced journalists, skilled communicator, and constant learner with a passion for storytelling and a track record of crafting compelling narratives. He has a diverse background in broadcast journalism, AI, public relations, data science, and social media management.
Posted on 06/12/2024
In News

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.”


This RFI is part of a broader initiative to gather diverse perspectives on the practical applications of AI in finance, the emerging opportunities it presents, and the challenges it poses in areas such as cybersecurity, privacy, and equity. The Treasury is particularly interested in how AI can promote inclusivity in financial access, a cornerstone of the administration’s policy towards economic fairness.


The inquiry seeks to deepen the Treasury’s understanding of how financial institutions are currently deploying AI — from automating loan decisions to detecting fraudulent activities and managing assets. The feedback gathered will guide potential updates to legislative and supervisory frameworks to ensure they effectively address the unique complexities AI introduces into the financial ecosystem.


Public participation is encouraged, with the Treasury seeking input from a wide range of stakeholders, including financial institutions, consumer groups, technology experts, and academic researchers. Contributors are invited to discuss potential obstacles to the responsible use of AI in financial settings, the impact of AI on consumers and businesses, and the adequacy of current regulations to manage AI-driven changes.


Comments and recommendations submitted in response to the RFI will be publicly available on the Federal eRulemaking Portal at www.regulations.gov, ensuring transparency in the formulation of future regulatory and policy directives. This open approach aims to foster a broad-based dialogue on how best to harness AI’s potential while mitigating its risks.


The Treasury’s proactive stance comes amid a global surge in AI adoption, which has seen AI transform service delivery and operational efficiency across various sectors. However, this rapid integration has also raised significant ethical, privacy, and security concerns that the RFI aims to address.


Stakeholders have 60 days from the announcement to submit their comments, a timeline that underscores the urgency and importance the Treasury places on staying ahead of technological advancements to prevent potential abuses and ensure that AI technologies benefit the entire spectrum of American society.


Need Help?


Keeping track of the everchanging AI 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.

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