The Financial Technology Association (FTA) submitted a comment letter opposing California Assembly Bill 2930 — related to Automatic Decision Tools — as amended.
“While we appreciate the deliberative process AB 2930 has gone through in the Senate, FTA must continue to oppose the bill as amended,” FTA wrote. “For the reasons below, financial services providers should remain exempt from further industry-specific regulation of artificial intelligence and machine learning (AI/ML). AI/ML and algorithms have been used for decades in financial services, governed by a comprehensive model-focused compliance and regulatory regime. AI/ML is allowing financial institutions to quickly innovate and implement effective, better-tailored programs while increasing the reach of their products and services and enhancing risk mitigation tools. Importantly, AI/ML is helping remove embedded bias from credit underwriting, improve financial offerings, prevent fraud and illicit finance, and reduce risk…With this robust statutory and regulatory framework already in effect for the financial services industry, we believe there should be no unnecessary duplication of regulation and compliance burdens.”
Read FTA’s full comment letter here.