ICBA called on the White House to harmonize the regulatory framework for artificial intelligence to address ambiguities inhibiting AI adoption.
Details: In a comment letter responding to an Office of Science and Technology Policy request for information on AI regulatory reform, ICBA said the administration should:
Harmonize AI standards to address regulatory fragmentation and inconsistent expectations across agencies.
Modernize model risk-management standards for community banks so requirements scale by bank size and model complexity.
Establish clear third-party AI contract guidelines to promote vendor transparency without additional burden.
Clarify data-use and privacy safeguards for responsible AI utilization under GLBA and state laws.
Train community bank examiners and publish evaluation guidance for AI to drive consistency and predictability.
Establish a unified regulatory sandbox for community banks to pilot AI safely.
Expand AI and digital identity frameworks to mitigate emerging risks.
Improve alignment between AI and cybersecurity frameworks.
Recent Advocacy:
ICBA last month told Congress that while AI has the potential to help community banks meet regulatory burdens and expand access to credit, thoughtful regulation is needed to ensure innovation does not come at the expense of consumer protection or financial stability.
Prior to President Donald Trump’s release of an AI Action Plan earlier this year, ICBA told the National Science Foundation that AI has the potential to improve efficiency, strengthen risk management, and enhance customer service, but regulatory frameworks must evolve.
Resources for Community Bankers: A recent Independent Banker magazine article offers tips for community banks that are developing policies on artificial intelligence.