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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10262 Introduced in House (IH)]
<DOC>
118th CONGRESS
2d Session
H. R. 10262
To require the financial regulators to carry out studies on the
realized and potential benefits of artificial intelligence, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 26, 2024
Ms. Waters (for herself and Mr. McHenry) introduced the following bill;
which was referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
To require the financial regulators to carry out studies on the
realized and potential benefits of artificial intelligence, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Analysis and Improvement Act of
2024'' or the ``AI Act of 2024''.
SEC. 2. STUDY ON AI BENEFITS AND RISKS BY BANKING REGULATORS.
(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Board of Governors of the Federal Reserve
System, the Federal Deposit Insurance Corporation Board, the
Comptroller of the Currency, the Director of the Bureau of Consumer
Financial Protection, and the National Credit Union Administration
Board shall submit to the Committee on Financial Services of the House
of Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate, and publish publicly, a report that examines--
(1) realized and potential benefits and risks of AI
technology, including--
(A) banking institutions' use of AI for customer
service;
(B) banking institutions' use of AI in loan
underwriting and servicing;
(C) banking institutions' use of AI in home
valuation;
(D) banking institutions' use of AI to detect and
deter fraud, money laundering, cybercrime, and other
illicit activity;
(E) the use of AI in debt collection, including
foreclosures;
(F) banking institutions' use of AI for internal
processes and compliance procedures, including for
compliance with Federal fair lending laws;
(G) how a variety of smaller banking institutions,
including community banks, credit unions, rural
depository institutions, minority depository
institutions, and community development financial
institutions, can leverage the benefits of AI
technology;
(H) banking institutions' use of AI to mitigate
bias and discrimination and increase banking services
to historically underserved and underbanked consumers;
(I) banking institutions' use of AI to enhance
cybersecurity risk management;
(J) the use of AI to enhance competitiveness among
banking institutions of all sizes;
(K) the use of AI, including for the purposes
described in subparagraphs (A) through (J), by nonbank
financial technology firms; and
(L) any other use cases such agency heads determine
appropriate;
(2) statues, regulations, and agency guidance, or the lack
thereof, impacting the development and the use of AI by
entities regulated by such agencies;
(3) current use cases of AI by such agencies for
supervision, and other areas where AI applications would be
uniquely suited but are not currently being deployed; and
(4) any challenges such agencies have in leveraging AI and
hiring and retaining staff with expertise in AI technology and
potential solutions to overcome such challenges.
(b) Recommendations.--The report required under subsection (a)
shall include regulatory proposals and legislative recommendations that
facilitate the responsible adoption of AI within the financial services
industry.
(c) Public Input.--The agency heads described under subsection (a)
shall publish a request for information to collect public input to
inform the drafting of the report required under subsection (a).
(d) Banking Institution Defined.--In this section, the term
``banking institution'' means a depository institution (as defined in
section 3 of the Federal Deposit Insurance Act) and a State credit
union or a Federal credit union (as such terms are defined,
respectively, under section 101 of the Federal Credit Union Act).
SEC. 3. STUDY ON AI BENEFITS AND RISKS BY THE SECURITIES AND EXCHANGE
COMMISSION.
(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Securities and Exchange Commission shall
submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate, and publish publicly, a report that examines--
(1) realized and potential benefits and risks of AI
technology, including--
(A) market participants' use of AI for market
research, examining the difference between public and
private markets;
(B) market participants' use of AI for portfolio
management;
(C) exchanges' use of AI for market surveillance,
fraud detection, and order placements; and
(D) any other use cases the Commission determines
appropriate;
(2) statues, regulations, and agency guidance, or the lack
thereof, impacting development and use of AI;
(3) current use cases of AI by the Commission in
supervision and other areas where AI applications would be
uniquely suited but are not currently being deployed; and
(4) any challenges the Commission has in leveraging AI and
in hiring or retaining staff with expertise in AI technology
and potential solutions to overcome such challenges.
(b) Recommendations.--The report required under subsection (a)
shall include regulatory proposals and legislative recommendations that
facilitate the responsible adoption of AI within the financial services
industry.
(c) Public Input.--The Commission shall--
(1) publish a request for information to collect public
input to inform the drafting of the report required under
subsection (a); and
(2) consult with self-regulatory organizations to inform
the drafting of the report under subsection (a).
SEC. 4. STUDY ON AI BENEFITS AND RISKS BY HOUSING AND MORTGAGE
REGULATORS.
(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Housing and Urban Development,
the Administrator of the Rural Housing Service of the Department of
Agriculture, the Director of the Federal Housing Finance Agency, and
the Director of the Bureau of Consumer Financial Protection shall
submit to the Committee on Financial Services of the House of
Representatives and the Committee on Banking, Housing, and Urban
Affairs of the Senate, and publish publicly, a report that examines--
(1) realized and potential benefits and risks of AI
technology, including--
(A) the use of AI to create efficiencies for
homebuyers in evaluating, comparing, and obtaining a
mortgage loan and in sustaining their homeownership
over time;
(B) the use of AI to enhance the accuracy,
efficiency, and fairness of credit decisions,
particularly for homebuyers in underserved communities;
(C) the use of AI to enhance the effectiveness of
risk management and compliance within the housing
finance system, including for compliance with Federal
fair lending laws;
(D) the use of AI by real estate agents;
(E) the use of AI in the marketing and outreach to
retail customers regarding housing products;
(F) the use of AI in property management;
(G) the use of AI by landlords;
(H) the use of AI by online housing platforms;
(I) the use of AI by mortgage servicers;
(J) the use of AI in mortgage underwriting and
servicing; and
(K) any other use cases such agency heads determine
appropriate;
(2) statues, regulations, and agency guidance, or the lack
thereof, impacting development and implementation of AI;
(3) current use cases of AI by such agencies in supervision
and other areas where AI applications would be uniquely suited
but are not currently being deployed; and
(4) any challenges such agencies have in leveraging AI and
hiring or retaining staff with expertise in AI technology and
potential solutions to overcome such challenges.
(b) Recommendations.--The report required under subsection (a)
shall include regulatory proposals and legislative recommendations that
facilitate the responsible adoption of AI within the housing industry
and the housing finance industry.
(c) Public Input.--The agency heads described under subsection (a)
shall publish a request for information to collect public input to
inform the drafting of the report required under subsection (a).
SEC. 5. STUDY ON AI BENEFITS AND RISKS IN SECURING THE U.S. FINANCIAL
SYSTEM FROM NATIONAL SECURITY THREATS.
(a) Report Required.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of the Treasury shall submit to
the Committee on Financial Services of the House of Representatives and
the Committee on Banking, Housing, and Urban Affairs of the Senate, and
publish publicly, a report that examines--
(1) realized and potential benefits and risks of AI
technology, including--
(A) the use of AI by financial institutions (as
defined in section 5312(a) of title 31, United States
Code) to meet the institutions' obligations under the
Bank Secrecy Act and sanctions laws; and
(B) the use of AI by financial institutions to
protect against cybersecurity threats and to respond to
cybersecurity attacks;
(2) statues, regulations, and agency guidance impacting
development and use of AI by financial institutions to comply
with the Bank Secrecy Act and sanctions laws;
(3) current use cases of AI by the Department of the
Treasury and areas where AI applications would be uniquely
suited but are not currently being deployed; and
(4) any challenges the Department of Treasury has in
leveraging AI and hiring or retaining staff with expertise in
AI technology and potential solutions to overcome such
challenges.
(b) Recommendations.--The report required under subsection (a)
shall include regulatory proposals and legislative recommendations that
facilitate the responsible adoption of AI within the financial services
industry.
(c) Public Input.--
(1) The Secretary shall publish a request for information
to collect public input to inform the drafting of the report
required under subsection (a).
(2) The Secretary shall consult with the Board of Governors
of the Federal Reserve System, the Federal Deposit Insurance
Corporation Board, the Comptroller of the Currency, the
Director of the Bureau of Consumer Financial Protection, and
the National Credit Union Administration Board to inform the
drafting of the report required under subsection (a).
SEC. 6. DEFINITIONS.
In this Act:
(1) AI.--The term ``AI'' has the meaning given the term
``artificial intelligence'' under section 5002 of the National
Artificial Intelligence Initiative Act of 2020 (15 U.S.C.
9401).
(2) Bank secrecy act.--The term ``Bank Secrecy Act''
means--
(A) section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b);
(B) chapter 2 of title I of Public Law 91-508 (12
U.S.C. 1951 et seq.); and
(C) subchapter II of chapter 53 of title 31, United
States Code.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
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