Lawmakers push for AI studies in finance and housing

House lawmakers, including Congresswoman Maxine Waters and House Financial Services Committee Chair Patrick McHenry, have introduced a bill requiring federal regulators to study the impact of artificial intelligence (AI) on the financial services and housing sectors.  

The bill, known as the "AI Act of 2024," would direct key federal financial regulators such as the Federal Reserve and the Federal Deposit Insurance Corporation to examine the benefits and risks of AI in these industries.  

The study would focus on how AI is used in areas like money laundering detection, fraud prevention, mortgage lending, and credit scoring.  

Waters emphasised that AI is already influencing these industries, necessitating a comprehensive regulatory framework.  

McHenry noted that AI-powered tools are also being used for market surveillance and tenant screening.  

He suggested that the growing use of AI might warrant revisions to privacy laws to address the increasing role of data.  

The proposal is part of broader efforts, including the House Committee's Bipartisan AI Working Group, aimed at ensuring the US remains a leader in AI development while maximising its benefits for consumers, firms, and regulators.  

The group's formation follows President Biden’s executive order in October 2024 to ensure the safe development and use of AI.