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In a letter Wednesday, America’s Credit Unions President/CEO Jim Nussle asked Sen. Mike Rounds (R-S.D.) and Sen. Mark Warner (D-Va.), chairman and ranking member for the Committee on Banking, Housing and Urban Affairs’ Subcommittee on Securities, Insurance and Investment, to ensure credit unions can continue to innovate using artificial intelligence as Congress and regulators consider new policy around the technology.
Credit unions have been engaging in collaborative innovation to leverage the power of AI for many aspects of their daily operations, including member service interactions, mortgage originations, fraud prevention and reducing compliance costs, Nussle emphasized in the letter, sent ahead of a hearing, “Guardrails and Growth: AI’s Role in Capital and Insurance Markets,” held Wednesday by the Subcommittee.
America’s Credit Unions made the following recommendations to Congress and regulators:
- Tailor future actions related to AI in a way that distinguishes between the use of AI technology by regulated versus unregulated institutions;
- Explore frameworks that make innovation accessible not just to the largest and most sophisticated entities, but also to smaller, community-based institutions;
- Accommodate AI technologies that can improve the detection and prevention of fraud; and
- Weigh the regulatory burden on credit unions against the benefit to consumers when implementing new laws and regulations that govern the use of AI in housing. A more reasonable approach would be to encourage regulators to understand how AI risks can be addressed through the application of existing laws and regulations.
“These efficiencies have tangible benefits to the communities credit unions serve and have shown promise in helping low- and moderate-income families get access to affordable credit,” Nussle wrote. “It is imperative that credit unions continue to responsibly utilize AI to maintain a competitive member-focused advantage against Wall Street megabanks.”
The trade group’s effort came a week after the White House released an AI action plan aimed at removing barriers for American leadership in AI. The plan identified over 90 federal policy actions the administration intends to take in the coming weeks and months, which focus on three pillars: Accelerating innovation, building American AI infrastructure and leading in international diplomacy and security.
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