Overregulation of emerging tech can stifle innovation, says America’s Credit Unions

A financial marketplace that allows credit unions to grow and innovate through the responsible use of artificial intelligence (AI) is vital. America’s Credit Unions shared this viewpoint and addressed support for AI in a letter to the Treasury Department, responding to its request for information (RFI) on the uses, opportunities, and risks of artificial intelligence in the financial services sector.

In the letter, America’s Credit Unions Director of Innovation and Technology Andrew Morris offered support for non-regulatory approaches for supporting and evaluating the use of AI within the financial services sector.

“Policymakers should avoid developing guidance targeted at general AI behavior with the intent of applying it to narrow and already highly regulated banking applications—such as credit underwriting or customer service interaction,” wrote Morris. “Doing so would overstate the perceived autonomy of AI agents while undervaluing the robust risk management processes already required by the National Credit Union Administration (NCUA) and other banking regulators.”

Morris explained that an environment of “regulatory skepticism or even hostility towards AI would harm credit unions and their members.”

 

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