U.S. Senate Committee on Banking, Housing and Urban Affairs holds hearing on AI benefits risks and competition with China

The U.S. Senate Committee on Banking, Housing and Urban Affairs held a hearing on how artificial intelligence could strengthen the U.S. economy, support small businesses, protect consumers and keep the United States ahead of China and other adversaries. In opening remarks, Chairman Tim Scott described AI as a tool with both opportunities and risks and said Congress should pursue thoughtful, well-informed solutions that mitigate major risks without making it harder for community banks to lend, startups to grow or families to access credit. Scott highlighted potential uses in financial services and the wider economy, including faster and more reliable services, lower operating costs for small businesses, improved customer service and faster fraud detection. He said roughly 20 percent of U.S. small businesses already use AI to help lower business costs, and argued that policy should also address how AI will change work by ensuring workers have the tools, training and opportunity to benefit from it. He also linked AI policy to cybersecurity, national security and export controls, calling for clear rules that allow U.S. companies to compete globally while limiting adversaries' access to sensitive technology. The hearing builds on member roundtables already conducted by the committee and is intended to gather expert testimony on the opportunities, risks and policy choices associated with AI.