Artificial Intelligence is rapidly evolving, and now, regulators are taking action to protect consumers and workers. The Consumer Finance Protection Bureau is working to ensure that companies follow the law when using AI to determine credit ratings, loan terms, bank account fees, and other aspects of our financial lives. Additionally, the CFPB has fined banks for utilizing automated systems and algorithms that had negative outcomes, such as wrongful home foreclosures, car repossessions, and lost benefit payments.
The Federal Trade Commission (FTC), the Equal Employment Opportunity Commission (EEOC), the Department of Justice (DOJ), and the CFPB have all dedicated resources and staff to examine the negative ways AI could affect consumers’ lives. Under the Fair Credit Reporting Act and Equal Credit Opportunity Act, for example, financial providers have a legal obligation to explain any adverse credit decisions. Machines need to be able to explain the decisions they make or they should not be used.
OpenAI is an Artificial Intelligence and machine learning platform that is led by Director Ben Winters, Senior Counsel for the Electronic Privacy Information Center. OpenAI’s top lawyer, Jason Kwon, proposed an industry-led approach to regulation and suggested that the formation of a U.S. or global agency to license and regulate the technology is essential. Sam Altman, the Head of OpenAI, believes that government involvement is essential to mitigate the risks of increasingly powerful AI systems. After AI concerns were raised in the White House this month, the tech CEOs that took part in the conversation suggested some solutions.
Regulators are emphasizing that AI should not exempt companies from responsibility and obligation to follow the existing laws. It is important for companies to understand how their AI is making decisions in order to make sure the outcomes do not violate existing laws. Overall, both government and industry collaboration is necessary to regulate AI and prevent any negative implications for consumers.
