This bill would require each federal financial regulator to set up or designate an "AI Innovation Lab." Regulated financial firms could apply to run approved "AI test projects" that make substantial use of artificial intelligence. Applications must describe the project, propose an alternative way to comply with one or more regulations, explain how the project serves the public interest or protects consumers or investors, give limits on size and duration, and estimate economic impact. Agencies must decide on applications within 120 days (with one 120-day extension allowed), and an application is automatically approved if the agency misses the extended deadline. An approval lets the applicant operate under the approved alternative compliance terms and limits enforcement by other regulators while the test project is active. Agencies must still be able to take enforcement action for fraud, unsafe or unsound practices, anti-money laundering failures, risks to deposit or share insurance funds, risks to financial markets, or national security. Agencies must adopt implementing regulations within 180 days, include data security requirements for submitted information, and publish annual aggregated reports on test project outcomes for 7 years.
No publicly available information on estimated costs or funding sources is included in the bill text.
The bill frames AI Innovation Labs as a way to let regulated entities experiment with AI without unnecessary regulatory barriers. It requires applicants to explain how projects could improve consumer or investor access, enhance efficiency or risk management, foster innovation or competitiveness, or improve regulatory compliance. Supporters in the text emphasize supervised experimentation, coordination among regulators, and safeguards that allow enforcement for fraud, unsafe practices, anti-money laundering failures, threats to insurance funds, market risks, or national security.
No publicly available information.