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CFPB Begins to Muscle Up AI Regulations

The American consumer protection service joins a group of organizations that are strengthening their protection tools through the use of artificial intelligence.

CFPB Begins to Muscle Up AI Regulations

Rohit Chopra, Director of the Consumer Financial Protection Bureau (CFPB), said during a conversation with media representatives last week that the agency has already begun some work aimed at continuing to expand its internal forces, in terms of bringing on board data processing specialists, technologists and employees of other profiles. According to him, the implementation of this solution in the field of employment is necessary to create tools for coping with modern technological challenges.

Last year, the CFPB fined several financial institutions for improper management of automated systems, as a result of which consumers faced unlawful deprivation of the right to buy housing, as well as problems in the form of car seizures and difficulties in paying for lost profits.

During a conversation with journalists, Chopra said that one of the key thoughts that the regulator is trying to convey is that companies that do not understand the decision-making algorithm of artificial intelligence will not be able to fully use advanced technology. He also said that in other cases, the agency monitors compliance with lending standards when databases are used.

The CFPB, along with the Civil Rights Division of the United States Department of Justice, the Federal Trade Commission, and the U.S. Equal Employment Opportunity Commission, last month supported the statement that AI-related decisions must comply with the legislative framework.

The joint statement points out that many automated systems are described as tools that provide understanding and breakthroughs, increase efficiency and guarantee cost savings, but at the same time, the process of using them is fraught with the risk of bias, automation of discrimination, and other negative consequences.

Ben Winters, senior counsel at the Electronic Privacy Information Center, said the statement was a good start. According to him, the opinion that there are currently no tools for regulating artificial intelligence is not true. The joint statement, as noted by Winters, reminds that companies and individuals are responsible for the decisions that AI makes.

Experts say that within the framework of solving problems with privacy and copyright appeared due to generative artificial intelligence, the greatest difficulty will be the ability to distinguish works created by AI from human creations. In this context, the problem of the value of human creativity is formed. The means of detecting signs of the use of artificial intelligence have difficulty identifying content created by early versions of AI text generators.

As we have reported earlier, CFPB Warns Banks Against Creation of Fake Accounts for Fee Harvesting.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.