"The White House’s AI Action Plan is a bold and welcome commitment to ensuring American leadership in one of the most transformative technologies of our time. In financial services, artificial intelligence has been used for many years to improve financial and product service offerings in lending. However, the rapid pace of new AI innovations has the power to unlock new opportunities for consumers, improve regulatory compliance, and make the financial system more efficient and secure.

“To realize that vision, we need a regulatory approach that is both modern and practical. As we emphasized in our letter to the Treasury Department last year, financial regulators must engage directly with AI tools and develop thoughtful, risk-based frameworks that understand the distinctions between various use cases and reflect how AI is actually being used across the industry today.

“Also, regulators cannot solely oversee innovation, they must participate in it. By using AI to enhance supervision, reduce compliance burdens, and better understand market behavior, government agencies can lead by example and foster more informed, effective policymaking. By creating an environment where both industry participants and regulators properly understand and use AI tools in their work, we ensure that innovative banks and fintech companies can continue to meet their consumers’ ever evolving needs in a safe and sound manner.

“The American Fintech Council is proud to support the administration’s goals of accelerating responsible innovation and reinforcing American leadership. We look forward to working with regulators and the private sector to ensure AI helps build a more inclusive, transparent, and competitive financial system."

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