WASHINGTON–When it comes to fostering the growth of artificial intelligence (AI), there are a number of principles America’s Credit Unions told Congress it would like to see followed.
The trade group’s president/CEO, Jim Nussle, outlined these principles in a letter to a Senate Bankingy in advance of its hearing on AI’s role in capital and insurance markets.
Credit unions are engaging in “collaborative innovation” to leverage the power of AI for many aspects of their daily operations, Nussle stated in the letter, adding that these include everything from member service interactions and mortgage originations to fraud prevention and reduction in compliance costs.
“These efficiencies have tangible benefits to the communities credit unions serve and have shown promise in helping low-and moderate-income families get access to affordable credit,” the letter reads. “It is imperative that credit unions continue to responsibly utilize AI to maintain a competitive member-focused advantage against Wall Street megabanks.”
The Recommendations
To ensure credit unions can continue to innovate using AI, the letter recommends Congress and regulators:
- Tailor future actions related to AI in a way that distinguishes between the use of AI technology by regulated versus unregulated institutions
- Explore frameworks that make innovation accessible not just to the largest and most sophisticated entities, but also to smaller, community-based institutions
- Accommodate AI technologies that can improve the detection and prevention of fraud;
- Weigh the regulatory burden on credit unions against the benefit to consumers when implementing new laws and regulations that govern the use of AI in housing. “A more reasonable approach would be to encourage regulators to understand how AI risks can be addressed through the application of existing laws and regulations,” the letter states.
