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
artificial intelligence
TCPA unsolicited robocall ban now includes AI-generated voices
By Kelsey Fayer & J. Matthew Thornton on
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
FTC authorizes use of compulsory process in artificial intelligence investigations
By Timothy Dickens & Gregory P. Szewczyk on
On November 21, the Federal Trade Commission (“FTC”) approved in a 3-0 vote a resolution authorizing the use of compulsory process in nonpublic investigations involving products and services that involve or claim to involve artificial intelligence (AI).
Compulsory process is akin to a subpoena, and it allows the FTC to request the production of information, documents, or testimony relevant to an investigation. … Continue Reading
Executive Order on artificial intelligence includes actions impacting consumer financial service providers
On October 29, the Biden Administration issued a broad Executive Order (Order) on artificial intelligence (AI). Titled “Executive Order on the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence,” the Order establishes guidelines for AI safety and security, aims to shield Americans’ data privacy, and emphasizes equity and civil rights. … Continue Reading
CPPA publishes new draft regulations addressing AI, risk assessments, cyber audits
By Philip N. Yannella, Gregory P. Szewczyk & Timothy Dickens on
The California Privacy Protection Agency (CPPA) recently published two new sets of draft regulations addressing a range of cutting-edge data protection issues. Although the CPPA has not officially started the formal rulemaking process, the Draft Cybersecurity Audit Regulations and the Draft Risk Assessment Regulations will serve as the foundation for the process moving forward. … Continue Reading
This week’s podcast episode: A look at the growing use of generative artificial intelligence and chatbots in consumer financial services, with special guests Ron Shevlin, Chief Research Officer, Cornerstone Advisors, and Reggie Young, Product Counsel, Lithic
By Barbara S. Mishkin on
Posted in Artificial Intelligence
We first look at what generative AI is and how it differs from other types of AI and technology such as machine learning. We then look at the ways in which banks and fintech companies can deploy AI tools and the business use case for banks and fintechs considering the addition of chatbots, including how chatbots differ from voice response units. … Continue Reading
OpenAI class action likely to increase scrutiny of webscraping and data collection practices
By Philip N. Yannella & Timothy Dickens on
On June 28, a group of plaintiffs filed a class action lawsuit against OpenAI—creator and publisher of the generative artificial intelligence (AI) tool ChatGPT—as well as OpenAI’s primary investor, Microsoft. The 151-page complaint is the first significant U.S. class action to assert that generative AI tools violate consumer privacy rights.
The Complaint, filed in the Northern District of California, challenges the core of the generative AI models. … Continue Reading
Democratic Senators urge CFPB to look at risks created by voice cloning
By John L. Culhane, Jr. & Michael Gordon on
A group of four Democratic members of the Senate Banking Committee, including Chairman Sherrod Brown, recently sent a letter to CFPB Director Chopra to express their concerns regarding the emergence of voice cloning technology and its potential exploitation in financial scams. The Senators ask the CFPB to “review the risks posed by this new technology as soon as practicable and take action under the CFPB’s existing authorities to protect consumers.”… Continue Reading
Building the engine alongside the brakes: Acting Comptroller Hsu’s remarks discuss impact of artificial intelligence and tokenization in banking
By James Mangiaracina on
Posted in Artificial Intelligence, OCC
On June 16, 2023, Michael J. Hsu, Acting Comptroller of the Currency delivered remarks to the American Bankers Association Risk and Compliance Conference in San Antonio, Texas. In his remarks, Hsu discussed both the benefits and risks of artificial intelligence (“AI”) and tokenization. The core of Hsu’s remarks is that, given the rapid innovation of AI and tokenization in banking, banks should closely work with regulators to manage technological risks.… Continue Reading
Senator Bennet Proposes Federal Commission to Regulate Artificial Intelligence
By Philip N. Yannella & Gregory P. Szewczyk on
Following recent Senate testimony in which OpenAI CEO Sam Altman proposed additional Congressional oversight for the development of artificial intelligence (AI), Colorado Senator Michael Bennet has re-introduced the Digital Platform Commission Act, a bill that would enable the creation of a federal agency to oversee the use of AI by digital platforms. … Continue Reading