President Joe Biden Monday issued an executive order directing federal agencies to pursue new standards for artificial intelligence (AI) in support of safety and security, protecting Americans’ privacy, advancing equity and civil rights, promoting innovation and competition, and more.
The executive order explicitly calls for developing standards and best practices to protect consumers from AI-enabled fraud, enacting bipartisan data privacy legislation, evaluating the collection and use of consumers’ data, and providing clear guidance to ensure AI does not exacerbate discrimination in lending.
As technology has advanced, AI has become more of a focus for regulators to address the potential risks while ensuring proper guidance that supports innovation.
NAFCU recently called on the bureau to be transparent about its own use of AI in supervisory activities, raising concerns about the hazards of opaque decision-making that the executive order appears to acknowledge in its principle related to government use of AI. The order notes the use of AI can pose risks, such as discrimination and unsafe decisions, and directs the issuance of guidance for agencies’ use of AI, including clear standards to protect rights and safety.
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