A new bill with bipartisan support would commission a study into the use of artificial intelligence (AI) in banking and housing, but lawmakers believe the new technology will allow for algorithmic price fixing and commercial We are sounding the alarm over the above illegal activities.
The AI Act of 2024, supported by top Democrats and Republicans on the House Financial Services Committee, would require banks to use AI in real estate valuation, loan underwriting, debt collection, and mortgage issuance; We will consider how fair it is. Business activities such as credit expansion using AI.
The study will be commissioned by the Federal Reserve, the Securities and Exchange Commission, the Department of Housing and Urban Development, and other federal agencies. The bill will also consider how AI can be used by landlords, property managers and real estate agents.
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“Artificial intelligence is growing rapidly, and people across the country are already seeing it impact mortgages, credit scoring, and more, and artificial intelligence is growing rapidly in housing and financial services,” said Congresswoman Maxine Waters (D-Calif.). “We're seeing it being taken advantage of.” members of the House Financial Services Committee said in a statement.
The new bill, combined with another House resolution, comes ahead of an AI hearing in committee later this week that will examine how AI is used inside banks and We're also looking at how we incorporate that into our security and data privacy policies. .
AI has gained public attention in recent years for its ability to convincingly imitate human language, and is increasingly being adopted in a variety of commercial sectors.
Some economists compare that consolidation to the personal computing revolution of the 1990s, making predictions ranging from soaring productivity to a new wave of offshoring jobs.
Rep. Patrick McHenry (R.N.C.), who is retiring as chairman of the House Financial Services Committee, announced the bill, saying, “Artificial intelligence has the potential to revolutionize our financial system.'' said in a statement.
The use of third-party algorithms that obtain proprietary data to make pricing recommendations has raised questions for lawmakers and courts in industries ranging from real estate to frozen potato processing.
In August, the Department of Justice and six state attorneys general antitrust litigation It accused the software company of “monopolizing the market in rent-setting software,” alleging that “landlords were able to collude and raise rents.”
The new law comes after a period in which inflation rose in the United States for the first time in decades and Americans' sensitivity to the cost of living skyrocketed.
According to various opinion polls, prices and the economy were the biggest issues for voters in the November election. Vice President Harris campaigned on a promise to end “price gouging” at grocery stores, where many Americans feel the most acutely.
The New York Federal Reserve and the Federal Trade Commission both pointed to expanding margins in the grocery sector due to post-pandemic inflation.
