REGULATORS TAKE AIM AT AI TO PROTECT CONSUMERS & WORKERS

As concerns grow over increasingly powerful artificial intelligence systems like ChatGPT, the nation's financial watchdog says it's working to ensure that companies follow the law when they're using Al

Already, automated systems and algorithms help determine credit ratings, loan terms, bank account fees, and other aspects of our financial lives. Al also affects hiring, housing and working conditions.

Ben Winters, Senior Counsel for the Electronic Privacy Information Center, said a joint statement on enforcement released by federal agencies last month was a positive first step.

"There's this narrative that Al is entirely unregulated, which is not really true,” he said.

"They're saying, 'Just because you use Al to make a decision, that doesn't mean you're exempt from responsibility regarding the impacts of that decision. This is our opinion on this. We're watching." In the past year, the Consumer Finance Protection Bureau said it has fined banks over mismanaged automated systems that resulted in wrongful home foreclosures, car repossessions, and lost benefit payments, after the institutions relied on new technology and faulty algorithms.

There will be no "Al exemptions" to consumer protection, regulators say, pointing to these enforcement actions as examples.

Consumer Finance Protection Bureau Director Rohit Chopra said the agency has "already started some work to continue to muscle up internally when it comes to bringing on board data scientists, technologists and others to make sure we can confront these challenges” and that the agency is continuing to identify potentially illegal activity.