Consumer Groups Highlight Risks of Unregulated AI Deployment by Financial Firms
Groups call on lawmakers to oppose CLARITY Act
A coalition of consumer advocacy groups sent a letter to members of the U.S. Senate expressing opposition to the so-called CLARITY Act that would allow financial firms to deploy artificial intelligence (AI) in unregulated, experimental ways.
In materials sent to the media, the groups - including Americans for Financial Reform - said:
The letter catalogues the risks and harms of unregulated deployment of AI by financial firms including racial bias and discrimination in credit, abusive debt collection practices, illegitimate account freezes and closures, risky and inappropriate chatbot guidance as well as risks to investor protection, market integrity, and financial stability.
The letter notes:
“This language [related to the AI sandbox] would allow financial firms to experiment on deploying AI for maximizing profits with effective impunity. Customers and the economy would bear the risks and harms, with financial institutions reaping the rewards. The threats and risks are too grave.”