Bill > S2528

This bill establishes AI Innovation Labs within each financial regulatory agency to create a controlled environment where regulated financial entities can experiment with artificial intelligence (AI) technologies without fear of immediate enforcement actions. Companies wanting to test an AI project must submit a detailed application to their appropriate financial regulatory agency, explaining the project's purpose, potential public benefits, and an alternative compliance strategy for existing regulations. The application must demonstrate that the AI project would improve consumer access, enhance efficiency, foster innovation, manage risks effectively, and not pose systemic risks to the financial system or national security. If approved, the agency will provide specific terms, limitations, and a termination date for the project, effectively creating a regulatory "sandbox" where companies can safely test innovative AI applications in financial services. The bill requires agencies to review applications within 120 days, with an automatic approval if no determination is made, and mandates annual reports to Congress summarizing the outcomes and lessons learned from these AI test projects, while explicitly preserving regulatory agencies' ability to take action against fraudulent activities. The legislation aims to balance innovation in financial technology with appropriate regulatory oversight and consumer protection.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/2528/all-info