Introduction
- Last panel of the day at a conference by the National Fair Housing Alliance
- Panel consists of heads of important regulatory agencies
- Focuses on the topic of artificial intelligence (AI) and its implications
Governor Michael Bar's Perspective on AI
- AI has promises and risks
- The Federal Reserve wants to encourage innovation with clear guidelines
- Rapid adoption of AI, particularly generative AI and large language models
- AI could improve productivity and daily lives, but also lead to economic dislocation and discrimination
- Data quality and rules of the road are important considerations
Acting Controller Michael Sue's Perspective on AI
- Recognizes a spectrum of AI, from machine learning to generative AI
- Emphasizes the need for controls and accountability, particularly in the use of generative AI
- Raises concerns about accountability with generative AI and its impact on consumers
Chairman Martin Gruenberg's Perspective on AI
- Acknowledges the importance of the conference and the role of the National Fair Housing Alliance in addressing equity and fairness
- Highlights the potential of AI to expand access to banking and credit, but also acknowledges the complexity and challenges of implementing the technology safely
- Discusses the need to consider consumer protection and safety and soundness in supervising institutions using AI
- Stresses the importance of building in protections from the outset, rather than repairing damage after the fact
Director Chopra's Perspective on AI
- Reflects on the previous ten years and the techno-utopianism surrounding AI
- Highlights the need for existing laws, regulations, and enforcement to address AI discrimination and uphold consumer protection
- Discusses the use of AI tools in investigations and supervision at the Consumer Financial Protection Bureau (CFPB)
- Emphasizes the importance of a balanced approach, considering outcomes and results, and the utilization of laws and regulations
Agencies' Use of AI Tools
- Agencies are developing their own internal capabilities and expertise in AI
- Focus on building technical skills within agencies
- Collaboration and information-sharing among agencies on AI issues and supervision
- Consideration of outcomes and results in the use of AI tools
Implementing White House AI Initiatives
- Alignment with the AI Bill of Rights and the executive order on AI
- Agencies are engaging with the principles and ideas outlined in these initiatives
- Focus on safety, security, consumer protection, privacy, equity, innovation, and competition
- No indication of modifications to model risk management guidance
Conclusion
- Panelists appreciate the opportunity to discuss AI and fair housing issues
- Acknowledgment of the role of the National Fair Housing Alliance
- Gratitude for the commitment to fair housing and lending
