The U.S. Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing on 18 September 2025 to assess how financial regulators and financial services firms are deploying artificial intelligence and what this implies for supervision, consumer protection, and market integrity. Committee leaders and members highlighted potential benefits such as efficiency gains and stronger fraud detection and anti-money laundering tools, while also focusing on emerging risks including AI-enabled fraud and misinformation. Subcommittee Chair Bryan Steil referenced Executive Order 14179 and the July 2025 U.S. AI action plan as supporting a less restrictive, “try-first” approach to AI development. Witnesses emphasised the need to embed security and governance throughout the AI lifecycle, described a risk-based control framework including access controls, encryption, anomaly detection and machine learning detection and response, and pointed to expanding use cases from internal productivity tools and code generation to Know Your Customer processes, back-office operations, customer service, and potential regulator use for market oversight and monitoring misconduct.
U.S. Financial Services Committee 2025-09-19
U.S. Financial Services Committee subcommittee holds hearing on how regulators and firms are using artificial intelligence
The U.S. Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence held a hearing to evaluate AI deployment by financial regulators and firms, focusing on supervision, consumer protection, and market integrity. Discussions highlighted AI's efficiency and fraud detection benefits, alongside risks like AI-enabled fraud. Witnesses stressed embedding security and governance in AI, advocating a risk-based control framework and expanding AI use cases in financial services.