The top US consumer watchdog is warning that the unchecked use of artificial intelligence tools by financial firms will have pernicious impacts on the housing market and beyond.
(Bloomberg) — The top US consumer watchdog is warning that the unchecked use of artificial intelligence tools by financial firms will have pernicious impacts on the housing market and beyond.
Rohit Chopra, who leads the Consumer Financial Protection Bureau, said Tuesday that his agency is focused on how the proliferation of AI affects ordinary Americans. He said that the technology could dramatically change many corners of finance.
“It creates a situation where if we don’t use the laws we have on the books today effectively, we will see a faster uptick in fraud, we will see more exclusion and discrimination, and frankly, less accuracy in the system when it comes to home appraisals and so much more,” Chopra told the Senate Banking Committee. “We have to focus on how big tech and AI will transform banking.”
In Washington, regulators and lawmakers have yet to put out a comprehensive plan for how to deal with the disruptive capacity of AI tools. Backers say the technology has the power to improve efficiency and lives, while critics warn of unknown consequences.
Earlier this month, the CFPB released a report on the increasing prevalence of AI-powered chatbots and the issues they raise.
On Tuesday, Chopra signaled that, ultimately, Congress might need to get involved with new laws. “We will work with you to figure out what additional tools are needed,” he said during a hearing before the committee.
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