Clarksville Times

Today, the Chairman of the House Financial Services Committee, Patrick McHenry (NC-10), and Ranking Member Maxine Waters (CA-43) released a staff report from the Committee’s bipartisan Working Group on Artificial Intelligence (AI). The group is led by Digital Assets, Financial Technology and Inclusion Subcommittee Chairman French Hill (AR-02) and Subcommittee Ranking Member Stephen F. Lynch (MA-08). This report culminates six roundtables focused on identifying existing and growing AI use cases across the financial services and housing industries, examining benefits, potential risks, and adoption hurdles.

"As consumers and businesses increasingly look to leverage AI, it is critical that lawmakers and regulators keep pace," said Chairman McHenry. "This report represents a bipartisan effort to understand the benefits and potential risks of artificial intelligence in these sectors. It also highlights the need for proper oversight and consumer protections addressing the growing number of AI use cases. I am proud of the work from both sides of the aisle and thank Ranking Member Waters and Congressmen Hill and Lynch for their leadership. This report lays out a blueprint for lawmakers as we navigate how to harness and oversee this evolving technology."

"In light of recent developments in Generative AI, we are witnessing its growing impact on American families' financial lives," said Ranking Member Waters. "This Bipartisan Working Group was created to build upon work started under my leadership as Chairwoman in previous Congresses. I appreciate Chairman McHenry's seriousness about this issue and his collaboration in establishing this Working Group. I also thank Congressmen Lynch and Hill for their leadership on this issue. The Working Group examined how government and industry should advance AI responsibly and equitably. While there is still much work to do, I'm pleased with our progress. As our report makes clear, this Committee will lead in overseeing AI to ensure equity, fairness, privacy while crafting legislation that maximizes AI benefits for all communities including communities of color while maintaining America's global leadership in AI development."

"Since creating our AI Working Group, committee members have diligently explored different applications of AI within Housing and Financial Services," said Rep. Hill. "We met with industry leaders and financial regulators to unpack AI's impacts on existing laws and identify gaps. As co-chair of FSC's AI Working Group, I am pleased with our progress highlighting our commitment to driving innovation while protecting Americans' privacy rights ensuring thoughtful U.S leadership in global AI development."

Committee staff takeaways from the report include:

1. The Committee should play a leading role in overseeing AI adoption in financial services/housing.

2. Regulators must apply/enforce existing laws including anti-discrimination laws assessing regulatory gaps as market participants adopt AI.

3. Ensure financial regulators have appropriate focus/tools overseeing new products/services.

4. Reform data privacy laws given data importance especially consumer data concerning AI.

5. Work with financial regulators understanding workforce impacts due to AI.

6. Ensure U.S global leadership on developing/using A.I.

Bipartisan Working Group Members:

Republican Members: Chairman Patrick McHenry (NC-10), Congressman French Hill (AR-02), Congresswoman Young Kim (CA-40), Congressman Mike Flood (NE-01), Congressman Zach Nunn (IA-03), Congresswoman Erin Houchin (IN-09)

Democratic Members: Ranking Member Maxine Waters (CA-43), Congressman Stephen F.Lynch(MA-08), Congresswoman Sylvia Garcia(TX-29), Congresswoman Ayanna Pressley(MA-07), Congressman Sean Casten(IL06)Congresswoman Brittany Pettersen(CO07)

On Tuesday July 23rd House Financial Services Committee will hold hearing entitled “AI Innovation Explored Insights into Applications Financial Services Housing” discussing findings further.

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