On December 19, 2024, the Treasury released a report following the issuance of its 2024 Request for Information on the Uses, Opportunities, and Risks of Artificial Intelligence (AI) in Financial Services. The report summarizes key themes from respondent feedback and recommends several next steps.
The Treasury’s report highlights increasing AI use throughout the financial sector and highlights how AI, including Generative AI, can create new opportunities. However, it also points out some risks, like issues with data privacy, bias, and relying on third-party providers. The report outlines the potential next steps to be considered by the Treasury, government agencies, and the financial services sector, including:
Continuing international and domestic collaboration among governments, regulators, and the financial services sector to promote consistent and robust standards for uses of AI in the financial services sector;
Further analysis and stakeholder engagement to explore solutions for any gaps in the existing regulatory frameworks, and to address the potential risk of AI causing consumer harm;
Financial regulators continue coordinating to identify potential enhancements to existing risk management frameworks and working with other government agencies to clarify supervisory expectations on the application of frameworks and standards, where appropriate;
The financial services sector and government agencies further facilitate financial services-specific AI information sharing, alongside the AI cybersecurity forum recommended in Treasury’s AI Cybersecurity report, to develop data standards, share risk management best practices, and enhance understanding of emerging AI technologies in financial services; and
Financial firms prioritize their review of AI use cases for compliance with existing laws and regulations before deployment and that they periodically reevaluate compliance as needed.
The Treasury’s press release can be found here.
View the full report here.