InfoBytes Blog
CFPB comments on Treasury RFI regarding artificial intelligence in finance
On August 13, the CFPB submitted a comment to the Treasury’s RFI regarding the uses, opportunities, and risks of artificial intelligence (AI) in the financial services sector (the Treasury’s RFI was covered by InfoBytes here). The CFPB focused on monitoring the market for consumer financial products and services to identify risks and ensure compliance with federal consumer financial protection laws. The CFPB noted the adoption of new technologies, including AI, in the consumer financial marketplace and underscored the importance of companies competing rather than “exploiting legal loopholes.” The Bureau also noted that firms must comply with consumer financial protection laws when adopting new technologies and that regulators will enforce existing rules to prevent consumer harm. The CFPB asserted that innovation was fostered by clear regulatory requirements that do not unfairly advantage incumbent businesses. Additionally, the CFPB highlighted its own efforts to ensure consistent treatment under the law for similar products and services, combat anticompetitive practices, and monitor the market. Finally, the CFPB said that while AI was a significant aspect of technological innovation in the financial sector, it would be crucial that innovation grows, and that growth occurs when firms have incentives to compete by lawfully offering the best products at the lowest prices.