This bill creates "AI Innovation Labs" within financial regulatory agencies to allow banks, investment firms, credit unions, and other regulated financial institutions to test new artificial intelligence products and services with reduced regulatory burden. Companies can apply to their primary regulator with a detailed proposal explaining how they would comply with existing rules through alternative methods, and the regulator has 120 days to approve or deny the application (with a possible 120-day extension, after which approval is automatic). Once approved, a company can operate its AI test project under the agreed-upon alternative compliance strategy for at least one year without enforcement action, though regulators can still intervene if the project poses fraud risk, threatens financial stability, or endangers consumers. The bill covers a broad range of financial institutions supervised by banking agencies, the Securities and Exchange Commission, the Consumer Financial Protection Bureau, credit union regulators, and mortgage finance agencies. Each regulator must establish rules within 180 days and submit annual reports to Congress for eight years describing aggregate outcomes from approved AI projects, without disclosing participating company names or proprietary information.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.