Artificial Intelligence

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Many financial services providers would be required to allow consumers seeking assistance to be connected to a “real person” by clicking on one button, under a new Biden Administration “Time is Money” initiative.

“Companies often deliberately design their business processes to be time-consuming or otherwise burdensome for consumers, in order to deter them from getting a rebate or refund they are due or canceling a subscription or membership they no longer want—all with the goal of maximizing profits,” the administration said in a fact sheet.… Continue Reading

Second in a Two-Part Series on the Utility of BSA Filings

In this post, we will once again consider the issue of the utility of Bank Secrecy Act (BSA) filings to the global anti-money laundering/countering the financing of terrorism (AML/CFT) compliance regime. 

In our first blog post in this series, we invited Don Fort, a former Chief of the Internal Revenue Service’s Criminal Investigation (CI) Division, to answer questions on utility of BSA filings from the perspective of law enforcement. … Continue Reading

The U.S. Department of the Treasury (“Treasury”) has released a Request for Information on the Uses, Opportunities, and Risks of Artificial Intelligence (“AI”) in the Financial Services Sector (“RFI”).  Written comments are due by August 12, 2024. 

AI is a broad topic and the term is sometimes used indiscriminately; as the RFI suggests, most AI systems being used or contemplated in the financial services sector involve machine learning, which is a subset of AI. … Continue Reading

The Bipartisan Senate AI Working Group, led by Senate Majority Leader Chuck Schumer (D-NY) released a comprehensive Roadmap for AI policy entitled, “Driving U.S. Innovation in Artificial Intelligence.”  The wide-ranging Roadmap is a call to action to Congress, federal agencies, and the private sector to foster advancements in, and address risks posed by, artificial intelligence.… Continue Reading

Colorado has become the first state to pass legislation (SB24-205) regulating the use of artificial intelligence (AI) within the United States.  This legislation is designed to address the influence and implications, ethically, legally, and socially, of AI technology across various sectors.

Any person doing business in Colorado, including developers or deployers of high-risk AI systems that are intended to interact with consumers. … Continue Reading

Judges are beginning to address the increasing use of AI tools in court filings—including reacting to instances of abuses by lawyers using it for generative purposes and requiring disclosures regarding the scope of AI use in the drafting of legal submissions.  Now JAMS, the largest private provider of alternative dispute resolution services worldwide, has issued rules—effective immediately—designed to address the use and impact of AI.… Continue Reading

Following their announcement last July regarding their plans to coordinate on a range of consumer financial protection issues , the CFPB Director and his European counterpart, the Commissioner for Justice and Consumer Protection of the European Commission, have released a joint statement highlighting some areas those coordinated efforts have identified for ongoing monitoring and particular focus.… Continue Reading

Following a year of new DOJ policies and guidance designed to incentivize companies to self-report misconduct and to cooperate with government investigations, the DOJ has added a new pilot whistleblower rewards program.  In their remarks at the American Bar Association’s 39th Annual National Institute on White Collar Crime, Deputy Attorney General Lisa Monaco and Acting Assistant Attorney General Nicole Argentieri both explained that the new whistleblower policy is designed to incentivize individuals to disclose corporate misconduct through financial rewards from any resulting forfeiture of criminal proceeds. … Continue Reading

Our special guest is Brad Blower, Principal and Founder of Inclusive-Partners LLC, and author of a recent blog post titled “The CFPB Has An Opportunity to Greatly Advance the Ethical and Non-Discriminatory Use of AI in Financial Services and Should Take It.”  We first discuss the lack of clear guidance from the CFPB on the non-discriminatory use of AI and the possible reasons for the CFPB’s apparent reticence to provide more specific guidance. … Continue Reading

On February 8, the Federal Communications Commission (FCC) finalized its plan to ban robocalls that feature voices generated by artificial intelligence, aiming to stem the tide of AI-generated scams and misinformation campaigns. 

The FCC’s declaratory ruling formalized its position that the Telephone Consumer Protection Act (TCPA)—specifically, the provision prohibiting the initiation of calls “using an artificial prerecorded voice to deliver a message without the prior express consent of the called party”—applies to the use of AI-generated voices. … Continue Reading