CFPB to muscle up for AI safety in ensuring automated systems comply with the law
The joint statement further noted that automated systems can perpetuate unlawful bias and discrimination and while these tools offer the promise of advancement.
The Consumer Finance Protection Bureau (CFPB), the agency of the United States government responsible for consumer protection in the financial sector, is taking additional measures to ensure that artificial intelligence (AI) is used properly to avoid issues such as mishandled automated systems at banks that resulted in incorrect foreclosures, car repossessions, and lost benefit payments.
Consumer Finance Protection Bureau Director Rohit Chopra mentioned in an interview with The Associated Press that the agency is hiring data scientists and technologists to tackle industry challenges. For companies to use AI safety effectively, they need to comprehend how it makes decisions, Chopra added. He also stressed the importance of considering fair lending laws when using data in decision-making processes.
The CFPB is joining other regulatory agencies, including the Civil Rights Division of the United States Department of Justice, the Federal Trade Commission, and the U.S. Equal Employment Opportunity Commission, in issuing a statement that AI decisions must comply with the law. The joint statement further noted that automated systems can perpetuate unlawful bias and discrimination and while these tools offer the promise of advancement, they can also produce harmful outcomes.