Opponents of CFPB rule rolling back ‘disparate impact’ liability highlight AI risks

Lenders’ increasing use of algorithms connected to massive artificial intelligence systems presents high risk of discrimination if the Consumer Financial Protection Bureau proceeds with its plan to stop authorizing disparate-impact claims in its enforcement of a major civil rights law, according to the Consumer Federation of America and a host of other groups.

Setting a Dec. 15 deadline, the CFPB provided 30 days for comment on the proposed rule, which argues disparate treatment, not disparate impact, should be the...