The US government is taking steps to ensure that the integration of AI and ChatGPT technology will not result in financial discrimination or harm to consumers. Regulators from four federal agencies, the Consumer Financial Protection Bureau, the Department of Justice, the Equal Employment Opportunity Commission and the Federal Trade Commission, pledged to enforce their respective laws should AI technology be misused.
The announcement comes after concerns that AI technology could lead to ‘digital redlining’, which is when algorithms discriminate against certain consumers, particularly when it comes to receiving housing or loan opportunities. To tackle this, the CFPB stated that they plan to introduce rules to make sure AI tools have safeguards against discrimination.
Phil Siegel, the co-founder of CAPTRS, a non-profit that uses AI for the good of society, believes there are interests for both consumers and businesses. AI technology would enable products to be tailored to individual consumer needs and allow for better self-serve advice applications. However, on the negative side, sophisticated scams and phishing schemes are becoming more and more prominent – and regulators must be prepared to provide adequate consumer protections.
Recently Elan Musk, Steve Wozniak, and other signatories have issued an open letter calling for governments to “enact a moratorium for a period of six months” for AI technology that is “more powerful than GPT-4”. Such technology, as the letter states, “could represent a profound change in the history of life on Earth, and should be planned for and managed with commensurate care and resources”.
AI and ChatGPT are set to raise a number of challenges, both for consumers, financial institutions, and regulators. Businesses such as CAPTRS are likely to play a critical role in ensuring the use of this technology is used for necessary gains, without resulting in any financial or moral harm. As these technologies expand further and become increasingly common, the US government will need to remain vigilant in ensuring these safeguarding principles are enforced effectively.
