Bill > S4951

This bill establishes regulatory sandboxes that allow regulated financial entities to experiment with artificial intelligence (AI) projects without the expectation of retroactive enforcement actions. The key provisions include: 1. Definitions of important terms like "AI test project," "appropriate financial regulatory agency," and "financial product or service." 2. Requirements for regulated entities to submit applications to the appropriate financial regulatory agency, detailing their proposed AI test project, an alternative compliance strategy, and a demonstration of how the project would serve the public interest and not present systemic or national security risks. 3. A process for the financial regulatory agencies to review and approve or deny the applications within 90 days, with the option to extend the review period by another 90 days. 4. Directions for the financial regulatory agencies to promulgate regulations governing the sandbox program, including procedures for modifying approved projects, consequences for non-compliance, termination dates, and processes for confidentiality and coordination between agencies. 4. A requirement for the financial regulatory agencies to submit annual reports to Congress on the outcomes of the AI test projects. The overall purpose of the bill is to provide a regulatory environment that encourages and enables the responsible development and use of AI technology in the financial services industry.