Bill > HR4801

This bill establishes AI Innovation Labs within financial regulatory agencies to allow regulated financial entities to experiment with artificial intelligence (AI) technologies with reduced regulatory risk. The bill creates a structured application process where financial institutions can propose AI test projects that involve using AI in financial products or services while seeking temporary waivers or modifications of existing regulations. Applicants must demonstrate that their AI project would serve the public interest, improve financial services, enhance efficiency, manage risks, and not present systemic risks to the financial system or national security. The relevant financial regulatory agency will review applications within 120 days and can approve projects with specific terms, limitations, and alternative compliance strategies. During the approved project period, the agency will limit enforcement actions related to the specific regulations outlined in the project's alternative compliance strategy. The bill requires agencies to submit annual reports to Congress about the outcomes of these AI test projects, protecting confidential business information. Each participating agency must also develop detailed regulations governing the AI Innovation Labs, including procedures for project modifications, compliance consequences, and confidentiality. The goal is to foster innovation in financial services by providing a controlled environment for AI experimentation while maintaining appropriate regulatory oversight and consumer protections.

Business and Industry

https://www.congress.gov/bill/119th-congress/house-bill/4801/all-info