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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 10262 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                               H. R. 10262

    To require the financial regulators to carry out studies on the 
  realized and potential benefits of artificial intelligence, and for 
                            other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                           November 26, 2024

Ms. Waters (for herself and Mr. McHenry) introduced the following bill; 
       which was referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL

 
    To require the financial regulators to carry out studies on the 
  realized and potential benefits of artificial intelligence, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Analysis and Improvement Act of 
2024'' or the ``AI Act of 2024''.

SEC. 2. STUDY ON AI BENEFITS AND RISKS BY BANKING REGULATORS.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Board of Governors of the Federal Reserve 
System, the Federal Deposit Insurance Corporation Board, the 
Comptroller of the Currency, the Director of the Bureau of Consumer 
Financial Protection, and the National Credit Union Administration 
Board shall submit to the Committee on Financial Services of the House 
of Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, and publish publicly, a report that examines--
            (1) realized and potential benefits and risks of AI 
        technology, including--
                    (A) banking institutions' use of AI for customer 
                service;
                    (B) banking institutions' use of AI in loan 
                underwriting and servicing;
                    (C) banking institutions' use of AI in home 
                valuation;
                    (D) banking institutions' use of AI to detect and 
                deter fraud, money laundering, cybercrime, and other 
                illicit activity;
                    (E) the use of AI in debt collection, including 
                foreclosures;
                    (F) banking institutions' use of AI for internal 
                processes and compliance procedures, including for 
                compliance with Federal fair lending laws;
                    (G) how a variety of smaller banking institutions, 
                including community banks, credit unions, rural 
                depository institutions, minority depository 
                institutions, and community development financial 
                institutions, can leverage the benefits of AI 
                technology;
                    (H) banking institutions' use of AI to mitigate 
                bias and discrimination and increase banking services 
                to historically underserved and underbanked consumers;
                    (I) banking institutions' use of AI to enhance 
                cybersecurity risk management;
                    (J) the use of AI to enhance competitiveness among 
                banking institutions of all sizes;
                    (K) the use of AI, including for the purposes 
                described in subparagraphs (A) through (J), by nonbank 
                financial technology firms; and
                    (L) any other use cases such agency heads determine 
                appropriate;
            (2) statues, regulations, and agency guidance, or the lack 
        thereof, impacting the development and the use of AI by 
        entities regulated by such agencies;
            (3) current use cases of AI by such agencies for 
        supervision, and other areas where AI applications would be 
        uniquely suited but are not currently being deployed; and
            (4) any challenges such agencies have in leveraging AI and 
        hiring and retaining staff with expertise in AI technology and 
        potential solutions to overcome such challenges.
    (b) Recommendations.--The report required under subsection (a) 
shall include regulatory proposals and legislative recommendations that 
facilitate the responsible adoption of AI within the financial services 
industry.
    (c) Public Input.--The agency heads described under subsection (a) 
shall publish a request for information to collect public input to 
inform the drafting of the report required under subsection (a).
    (d) Banking Institution Defined.--In this section, the term 
``banking institution'' means a depository institution (as defined in 
section 3 of the Federal Deposit Insurance Act) and a State credit 
union or a Federal credit union (as such terms are defined, 
respectively, under section 101 of the Federal Credit Union Act).

SEC. 3. STUDY ON AI BENEFITS AND RISKS BY THE SECURITIES AND EXCHANGE 
              COMMISSION.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Securities and Exchange Commission shall 
submit to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, and publish publicly, a report that examines--
            (1) realized and potential benefits and risks of AI 
        technology, including--
                    (A) market participants' use of AI for market 
                research, examining the difference between public and 
                private markets;
                    (B) market participants' use of AI for portfolio 
                management;
                    (C) exchanges' use of AI for market surveillance, 
                fraud detection, and order placements; and
                    (D) any other use cases the Commission determines 
                appropriate;
            (2) statues, regulations, and agency guidance, or the lack 
        thereof, impacting development and use of AI;
            (3) current use cases of AI by the Commission in 
        supervision and other areas where AI applications would be 
        uniquely suited but are not currently being deployed; and
            (4) any challenges the Commission has in leveraging AI and 
        in hiring or retaining staff with expertise in AI technology 
        and potential solutions to overcome such challenges.
    (b) Recommendations.--The report required under subsection (a) 
shall include regulatory proposals and legislative recommendations that 
facilitate the responsible adoption of AI within the financial services 
industry.
    (c) Public Input.--The Commission shall--
            (1) publish a request for information to collect public 
        input to inform the drafting of the report required under 
        subsection (a); and
            (2) consult with self-regulatory organizations to inform 
        the drafting of the report under subsection (a).

SEC. 4. STUDY ON AI BENEFITS AND RISKS BY HOUSING AND MORTGAGE 
              REGULATORS.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development, 
the Administrator of the Rural Housing Service of the Department of 
Agriculture, the Director of the Federal Housing Finance Agency, and 
the Director of the Bureau of Consumer Financial Protection shall 
submit to the Committee on Financial Services of the House of 
Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate, and publish publicly, a report that examines--
            (1) realized and potential benefits and risks of AI 
        technology, including--
                    (A) the use of AI to create efficiencies for 
                homebuyers in evaluating, comparing, and obtaining a 
                mortgage loan and in sustaining their homeownership 
                over time;
                    (B) the use of AI to enhance the accuracy, 
                efficiency, and fairness of credit decisions, 
                particularly for homebuyers in underserved communities;
                    (C) the use of AI to enhance the effectiveness of 
                risk management and compliance within the housing 
                finance system, including for compliance with Federal 
                fair lending laws;
                    (D) the use of AI by real estate agents;
                    (E) the use of AI in the marketing and outreach to 
                retail customers regarding housing products;
                    (F) the use of AI in property management;
                    (G) the use of AI by landlords;
                    (H) the use of AI by online housing platforms;
                    (I) the use of AI by mortgage servicers;
                    (J) the use of AI in mortgage underwriting and 
                servicing; and
                    (K) any other use cases such agency heads determine 
                appropriate;
            (2) statues, regulations, and agency guidance, or the lack 
        thereof, impacting development and implementation of AI;
            (3) current use cases of AI by such agencies in supervision 
        and other areas where AI applications would be uniquely suited 
        but are not currently being deployed; and
            (4) any challenges such agencies have in leveraging AI and 
        hiring or retaining staff with expertise in AI technology and 
        potential solutions to overcome such challenges.
    (b) Recommendations.--The report required under subsection (a) 
shall include regulatory proposals and legislative recommendations that 
facilitate the responsible adoption of AI within the housing industry 
and the housing finance industry.
    (c) Public Input.--The agency heads described under subsection (a) 
shall publish a request for information to collect public input to 
inform the drafting of the report required under subsection (a).

SEC. 5. STUDY ON AI BENEFITS AND RISKS IN SECURING THE U.S. FINANCIAL 
              SYSTEM FROM NATIONAL SECURITY THREATS.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of the Treasury shall submit to 
the Committee on Financial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Affairs of the Senate, and 
publish publicly, a report that examines--
            (1) realized and potential benefits and risks of AI 
        technology, including--
                    (A) the use of AI by financial institutions (as 
                defined in section 5312(a) of title 31, United States 
                Code) to meet the institutions' obligations under the 
                Bank Secrecy Act and sanctions laws; and
                    (B) the use of AI by financial institutions to 
                protect against cybersecurity threats and to respond to 
                cybersecurity attacks;
            (2) statues, regulations, and agency guidance impacting 
        development and use of AI by financial institutions to comply 
        with the Bank Secrecy Act and sanctions laws;
            (3) current use cases of AI by the Department of the 
        Treasury and areas where AI applications would be uniquely 
        suited but are not currently being deployed; and
            (4) any challenges the Department of Treasury has in 
        leveraging AI and hiring or retaining staff with expertise in 
        AI technology and potential solutions to overcome such 
        challenges.
    (b) Recommendations.--The report required under subsection (a) 
shall include regulatory proposals and legislative recommendations that 
facilitate the responsible adoption of AI within the financial services 
industry.
    (c) Public Input.--
            (1) The Secretary shall publish a request for information 
        to collect public input to inform the drafting of the report 
        required under subsection (a).
            (2) The Secretary shall consult with the Board of Governors 
        of the Federal Reserve System, the Federal Deposit Insurance 
        Corporation Board, the Comptroller of the Currency, the 
        Director of the Bureau of Consumer Financial Protection, and 
        the National Credit Union Administration Board to inform the 
        drafting of the report required under subsection (a).

SEC. 6. DEFINITIONS.

    In this Act:
            (1) AI.--The term ``AI'' has the meaning given the term 
        ``artificial intelligence'' under section 5002 of the National 
        Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 
        9401).
            (2) Bank secrecy act.--The term ``Bank Secrecy Act'' 
        means--
                    (A) section 21 of the Federal Deposit Insurance Act 
                (12 U.S.C. 1829b);
                    (B) chapter 2 of title I of Public Law 91-508 (12 
                U.S.C. 1951 et seq.); and
                    (C) subchapter II of chapter 53 of title 31, United 
                States Code.
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