The US Treasury Department is actively seeking insights into the integration of artificial intelligence (AI) within the financial services industry, aiming to balance innovation with consumer protection and financial system stability. Under Secretary for Domestic Finance Nellie Liang emphasized the Biden administration’s commitment to nurturing financial innovation while safeguarding stakeholders.
In an extensive request for information (RFI), the Treasury Department solicits input from academia, financial institutions, and industry experts regarding the specific applications of AI in financial products and services. This move underscores the government’s proactive stance in understanding and regulating the expanding use of AI across the sector.
The RFI also highlights concerns surrounding the accessibility of AI tools for smaller banks, prompting inquiries into the challenges they face in deploying such technologies and the extent of their reliance on third-party solutions. This initiative reflects ongoing efforts to bridge potential capability gaps between larger and smaller financial institutions, ensuring a level playing field in AI adoption.
As AI continues to evolve rapidly, the Treasury Department is poised to leverage strategic partnerships and innovative development platforms to empower smaller financial entities. Through collaborative endeavors and ongoing regulatory oversight, the government aims to harness the potential of AI while mitigating associated risks, fostering a resilient and inclusive financial ecosystem.
