The Department of the Treasury has published a report that identifies the risks associated with the use of artificial intelligence in the financial sector and recommendations on how to mitigate them. The Treasury said Thursday that the report is based on the response of experts and industry stakeholders to a request for information issued in June.
"Through this AI RFI, Treasury continues to engage with stakeholders to deepen its understanding of current uses, opportunities, and associated risks of AI in the financial sector," commented Nellie Liang, under secretary for domestic finance.
According to the report, the Treasury received a total of 103 comments from financial companies, technology providers, consumer advocacy groups, consulting firms and trade associations on AI deployment within the sector.
The respondents confirmed that AI is increasingly in use across a broad range of financial functions, but relayed that the technology is introducing new risks. As a result, major industry players are cautious about expanding the rollout of AI tools.
Some expressed concerns over the differences in the supervision of AI development and deployment in bands and non-banks, as well as the dependence of smaller players on third-party technology providers.
Through the responses, the agency identified steps that the government can take to mitigate risks associated with AI such as establishing a clear definition of models and systems relevant to the finance sector.
Sector representatives also want expanded consumer protections and uniform compliance with laws that apply to existing and emerging technologies. In addition, the firms asked Treasury for assistance in assessing and deploying AI models and systems.