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Lawmakers on the House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence gathered Thursday to explore how artificial intelligence is reshaping the U.S. financial system. The hearing, titled “Unlocking the Next Generation of AI in the U.S. Financial System for Consumers, Businesses, and Competitiveness,” featured testimony from technology leaders and policy experts examining AI’s potential for lending, fraud detection and compliance, alongside its risks.
Ahead of the hearing, America’s Credit Unions submitted a letter emphasizing that while AI can enhance member service and improve efficiency, its deployment must not undermine the cooperative principles central to credit unions. The group noted that AI tools are already helping credit unions detect fraud and better understand member needs, but warned that regulatory approaches must be carefully calibrated.
“Credit unions are committed to responsibly leveraging AI to expand access to affordable financial services, but guardrails are needed to ensure consumer protections keep pace with innovation,” the letter stated.
The organization urged lawmakers to ensure any new framework supports smaller institutions as they adopt emerging technologies. Without balanced oversight, credit unions cautioned, AI risks could widen the competitive gap between large banks and community-based lenders.
With proposals before Congress ranging from AI “sandboxes” to national security protections, Thursday’s discussion highlighted both the transformative promise and the unresolved questions around artificial intelligence in finance.
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