American Banker published an op-ed by DSA president, Alison Jimenez, titled “AI use carries bias risk for financial regulators.” Ms. Jimenez discusses the need for financial regulators to be aware of the risk of bias within their own supervisory algorithms.
The article examines how bias can inadvertently and explicitly enter algorithms and highlights potential issues with algorithms employed by FinCEN, the CFPB and Finra. Ms. Jimenez concludes with the suggestion that the US House Committee on Financial Services- Task Force on Artificial Intelligence expand its mission to also review AI used by financial regulators.
“Regulators need to review their own supervisory algorithms for unintended discriminatory outcomes. Otherwise, they may unwittingly play a role in perpetuating inequalities. “
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