The U.S. Chamber of Commerce (“Chamber”) appreciates the opportunity to comment on the European Commission’s (“Commission”) Consultation on Artificial Intelligence (“AI”) in the Financial Sector (“Consultation”) to identify the main use cases and the benefits, barriers, and risks related to the development of AI applications in the financial sector.
The U.S. Chamber of Commerce is the world’s largest business organization. Our members range from small businesses and local chambers of commerce, to leading industry associations and global corporations, to emerging and fast-growing industries driving innovation and progress. Our members represent the various sectors highlighted in this Consultation, many of which are either headquartered or operate in Europe.
Financial institutions have been using AI technology in different capacities for decades, for the benefit of their consumers and clients. AI has brought efficiencies to the financial services sector that improve the consumer experience, increase inclusion in capital markets, support responsible lending and access to credit, detect and prevent fraud, and support anti-money laundering efforts. AI continues to evolve and will present opportunities to further improve the financial system and customer engagement.
The Chamber has been a leading voice and an active participant in public policy discourse regarding the regulatory treatment of AI. For example, in September 2019, the Chamber released a set of AI policy principles that outline regulatory concepts for AI such as adopting a risk-based approach and endorsing sector-specific solutions as opposed to a one-size-fits-all approach.[1]
Further, in 2022, the Chamber formed the Commission on Artificial Intelligence, Competitiveness, Inclusion, and Innovation (“Chamber AI Commission”). This independent Chamber AI Commission, chaired by former members of the U.S. House of Representatives and composed of academics, business leaders, ethicists, and technological leaders, met with experts of varying opinions across the United States, the European Union, and the United Kingdom. The report and recommendations were a cumulation of over 14 months of work and were released in March 2023.[2] The Chamber’s technology policy staff has met with EU officials several times to discuss AI policy and the Chamber AI Commission’s recommendations.
In pointing out that many activities which may involve AI are already covered by existing laws and regulations, the Chamber AI Commission advised policymakers to take a gap-filling, risk-based approach when addressing regulatory uncertainty around AI. Broadly, the Chamber has urged regulators to consider the evolving nature of AI and the wide array of regulations and consumer and investor protections already in place before contemplating any new policy options. The financial services industry is already heavily regulated and has existing risk management frameworks in place to manage risks associated with AI.
The Chamber strongly supports a balanced and flexible framework towards AI that mitigates novel risks posed by AI while maximizing its innovative potential. We have advised regulators that any future recommendations for regulation should be technology neutral and in response to a clearly identified regulatory gap, taking into account the robust regulatory requirements already in place and focusing on outcomes, risks, and real-world applications of AI – rather than the underlying technologies deployed by financial institutions.
We understand that the Commission’s objective in issuing this Consultation is to improve the implementation of the EU AI Act and other existing financial services legislation in the financial sector. We appreciate the Commission clearly stating that its aim “is not to lead to policy work that would generate new duplicative requirements in relations to the use of AI by the financial sector, or to new requirements that have the potential to stifle AI innovation.”[3]
However, several questions in the Consultation ask respondents if further guidance is necessary to support compliance with the AI Act. With a variety of EU regulations already in place across the financial services spectrum, we do not believe financial services-specific EU measures are necessary with regard to the use of AI. We encourage the Commission to maintain a flexible and principles-based approach going forward that can adapt to technological advancement, ensuring that innovation can proceed without burdensome guardrails put around it. Any initiatives to address AI through guidance or formal regulations should not inappropriately disincentivize the use of a technology that has been safely and appropriately deployed by many regulated entities for years.
Given the sheer breadth of the questions asked by the Commission in this Consultation, the wide array of financial institutions utilizing AI, and the evolving nature of AI, the Chamber encourages the Commission to continue its learning in this space through public roundtables and other stakeholder engagement before issuing guidance, recommendations, or calls to action.
The Consultation sets forth an array of questions on the use of AI by the financial sector and the impact of the EU AI Act. The Chamber’s response will provide feedback on AI tools and models, AI use cases and benefits, AI risks and challenges, governance and risk management considerations, and implementation of the EU AI Act.
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[1] U.S. Chamber of Commerce Technology Engagement Center, Artificial Intelligence Principles (September 23, 2019), available at https://americaninnovators.com/news/u-s-chamber-releases-artificial-intelligence-principles/.
[2] U.S. Chamber of Commerce Technology Engagement Center, Commission on Artificial Intelligence Competitiveness, Inclusion, and Innovation, Report and Recommendations (2023), available at https://www.uschamber.com/assets/documents/CTEC_AICommission2023_Report_v6.pdf.
[3] Consultation, p. 3.
