Good morning. I am pleased to be here today to discuss the Interagency Enforcement Policy Statement on Artificial Intelligence (AI). As we all know, AI is a rapidly evolving technology that has the potential to revolutionize how financial services are delivered and regulated.
The Consumer Financial Protection Bureau (CFPB) is committed to ensuring that AI-enabled products and services are safe for consumers. We believe it is essential for regulators to take an active role in understanding and monitoring the use of AI in consumer finance markets. To this end, we have issued an interagency policy statement outlining our expectations for responsible use of AI by financial institutions.
This policy statement sets out principles designed to ensure that firms using AI do so responsibly, with appropriate risk management practices in place, and with due consideration given to consumer protection concerns such as fairness, accuracy, transparency, privacy and security. The policy also outlines our expectations regarding data governance practices related to the development of algorithms used in automated decision-making processes.
We recognize that there may be legitimate differences among firms when it comes to their approaches towards implementing these principles; however, all firms should strive towards meeting them as best they can within their own context. We will continue working closely with industry stakeholders on developing guidance around implementation of these principles going forward.
Finally, I want emphasize that while this policy statement provides important guidance on responsible use of AI by financial institutions – ultimately it is up each firm’s leadership team – including its board members –to ensure compliance with applicable laws and regulations governing their activities involving artificial intelligence technologies .
In conclusion , I would like thank everyone who contributed their time , expertise ,and insights into helping us develop this interagency enforcement policy statement . It reflects a shared commitment from across government agencies toward promoting responsible innovation through effective oversight . Thank you again for your attention .
I hope my remarks today have provided useful insight into our approach towards regulating artificial intelligence technologies used by financial institutions . Our goal at CFPB remains clear : protecting consumers while encouraging innovation through responsible use of new technologies like artificial intelligence . |Director Chopra’s Prepared Remarks on the Interagency Enforcement Policy Statement on “Artificial Intelligence” |Consumer Financial Protection Bureau|Consumer Financial Protection Bureau