Consumers group says financial regulators must adapt rules to meet risks posed by AI

As Republicans push back on artificial intelligence regulation in the financial sector, Consumer Federation of America argues in a Treasury Department proceeding that specific guardrails are critical to ensure that existing laws continue to protect vulnerable populations as AI plays a growing role in credit, mortgage and other financial decisions.

Treasury in June issued a request for information on AI uses, opportunities and risks for the financial sector, wrapping up a public comment period on Aug. 12.

“The Treasury...