WHAT THIS BILL REGULATES · 1 REQUIREMENT TYPE
How Is This Bill Enforced
Verbatim statutory text on the left; plain-language analysis and a per-section checklist on the right. Numbered markers cross-link to the matching checklist row.
This Act may be cited as the ''Analysis and Improvement Act of 2024'' or the ''AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) Act of 2024''.
Establishes the short title of the Act as the "Analysis and Improvement Act of 2024" or the "AI Act of 2024." This section creates no compliance obligations.
(a) 1 Not later than 180 days after the date of the enactment of this Act, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation Board, the Comptroller of the Currency, the Director of the Bureau of Consumer Financial Protection, and the National Credit Union Administration Board shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and publish publicly, a report that examines— (1) realized and potential benefits and risks of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology, including— (A) banking institutionsBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d)' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) for customer service; (B) banking institutionsBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d)' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) in loan underwriting and servicing; (C) banking institutionsBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d)' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) in home valuation; (D) banking institutionsBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d)' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) to detect and deter fraud, money laundering, cybercrime, and other illicit activity; (E) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) in debt collection, including foreclosures; (F) banking institutionsBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d)' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) for internal processes and compliance procedures, including for compliance with Federal fair lending laws; (G) how a variety of smaller banking institutionsBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d), including community banks, credit unions, rural depository institutions, minority depository institutions, and community development financial institutions, can leverage the benefits of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology; (H) banking institutionsBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d)' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) to mitigate bias and discrimination and increase banking services to historically underserved and underbanked consumers; (I) banking institutionsBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d)' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) to enhance cybersecurity risk management; (J) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) to enhance competitiveness among banking institutions of all sizes; (K) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1), including for the purposes described in subparagraphs (A) through (J), by nonbank financial technology firms; and (L) any other use cases such agency heads determine appropriate; (2) statues, regulations, and agency guidance, or the lack thereof, impacting the development and the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by entities regulated by such agencies; (3) current use cases of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by such agencies for supervision, and other areas where AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) applications would be uniquely suited but are not currently being deployed; and (4) any challenges such agencies have in leveraging AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) and hiring and retaining staff with expertise in AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology and potential solutions to overcome such challenges.
(b) 1 The report required under subsection (a) shall include regulatory proposals and legislative recommendations that facilitate the responsible adoption of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) within the financial services industry.
(c) 1 The agency heads described under subsection (a) shall publish a request for information to collect public input to inform the drafting of the report required under subsection (a).
(d) In this section, the term ''banking institutionBanking institutionThe term "banking institution" means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).Section 2(d)'' means a depository institution (as defined in section 3 of the Federal Deposit Insurance Act) and a State credit union or a Federal credit union (as such terms are defined, respectively, under section 101 of the Federal Credit Union Act).
Requires five federal banking regulators — the Board of Governors of the Federal Reserve System, the FDIC Board, the Comptroller of the Currency, the Director of the CFPB, and the NCUA Board — to jointly submit and publicly publish a report within 180 days examining AI benefits and risks across banking use cases including customer service, loan underwriting, home valuation, fraud detection, debt collection, compliance, cybersecurity, community banking, and financial technology firms. The report must also cover the regulatory landscape, internal agency AI use, and hiring challenges, and must include legislative and regulatory recommendations. Agencies must also publish a request for information to collect public input.
All obligations in this section fall on federal agencies. No private-sector compliance duties are created.
(a) 2 Not later than 180 days after the date of the enactment of this Act, the Securities and Exchange Commission shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and publish publicly, a report that examines— (1) realized and potential benefits and risks of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology, including— (A) market participants' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) for market research, examining the difference between public and private markets; (B) market participants' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) for portfolio management; (C) exchanges' use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) for market surveillance, fraud detection, and order placements; and (D) any other use cases the Commission determines appropriate; (2) statues, regulations, and agency guidance, or the lack thereof, impacting development and use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1); (3) current use cases of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by the Commission in supervision and other areas where AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) applications would be uniquely suited but are not currently being deployed; and (4) any challenges the Commission has in leveraging AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) and in hiring or retaining staff with expertise in AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology and potential solutions to overcome such challenges.
(b) 2 The report required under subsection (a) shall include regulatory proposals and legislative recommendations that facilitate the responsible adoption of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) within the financial services industry.
(c) 2 The Commission shall— (1) publish a request for information to collect public input to inform the drafting of the report required under subsection (a); and (2) consult with self-regulatory organizations to inform the drafting of the report under subsection (a).
Requires the Securities and Exchange Commission to submit and publicly publish a report within 180 days examining AI benefits and risks in securities markets, including market research, portfolio management, market surveillance, fraud detection, and order placement. The report must also examine the regulatory landscape, internal Commission AI use, hiring challenges, and must include legislative and regulatory recommendations. The SEC must publish a request for information and consult with self-regulatory organizations.
All obligations fall on the SEC. No private-sector compliance duties are created.
(a) 3 Not later than 180 days after the date of the enactment of this Act, the Secretary of Housing and Urban Development, the Administrator of the Rural Housing Service of the Department of Agriculture, the Director of the Federal Housing Finance Agency, and the Director of the Bureau of Consumer Financial Protection shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and publish publicly, a report that examines— (1) realized and potential benefits and risks of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology, including— (A) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) to create efficiencies for homebuyers in evaluating, comparing, and obtaining a mortgage loan and in sustaining their homeownership over time; (B) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) to enhance the accuracy, efficiency, and fairness of credit decisions, particularly for homebuyers in underserved communities; (C) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) to enhance the effectiveness of risk management and compliance within the housing finance system, including for compliance with Federal fair lending laws; (D) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by real estate agents; (E) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) in the marketing and outreach to retail customers regarding housing products; (F) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) in property management; (G) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by landlords; (H) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by online housing platforms; (I) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by mortgage servicers; (J) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) in mortgage underwriting and servicing; and (K) any other use cases such agency heads determine appropriate; (2) statues, regulations, and agency guidance, or the lack thereof, impacting development and implementation of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1); (3) current use cases of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by such agencies in supervision and other areas where AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) applications would be uniquely suited but are not currently being deployed; and (4) any challenges such agencies have in leveraging AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) and hiring or retaining staff with expertise in AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology and potential solutions to overcome such challenges.
(b) 3 The report required under subsection (a) shall include regulatory proposals and legislative recommendations that facilitate the responsible adoption of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) within the housing industry and the housing finance industry.
(c) 3 The agency heads described under subsection (a) shall publish a request for information to collect public input to inform the drafting of the report required under subsection (a).
Requires four housing and mortgage regulators — the Secretary of HUD, the Administrator of the Rural Housing Service, the Director of FHFA, and the Director of CFPB — to submit and publicly publish a report within 180 days examining AI benefits and risks in housing and mortgage markets. The report covers use cases including mortgage origination efficiency, credit decision fairness, risk management, real estate agents, marketing, property management, landlords, online housing platforms, and mortgage servicing. The report must include regulatory and legislative recommendations, and the agencies must publish a request for information.
All obligations fall on federal agencies. No private-sector compliance duties are created.
(a) 4 Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury shall submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate, and publish publicly, a report that examines— (1) realized and potential benefits and risks of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology, including— (A) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by financial institutions (as defined in section 5312(a) of title 31, United States Code) to meet the institutions' obligations under the Bank Secrecy ActBank Secrecy ActThe term "Bank Secrecy Act" means— (A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b); (B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and (C) subchapter II of chapter 53 of title 31, United States Code.Section 6(2) and sanctions laws; and (B) the use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by financial institutions to protect against cybersecurity threats and to respond to cybersecurity attacks; (2) statues, regulations, and agency guidance impacting development and use of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by financial institutions to comply with the Bank Secrecy ActBank Secrecy ActThe term "Bank Secrecy Act" means— (A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b); (B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and (C) subchapter II of chapter 53 of title 31, United States Code.Section 6(2) and sanctions laws; (3) current use cases of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) by the Department of the Treasury and areas where AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) applications would be uniquely suited but are not currently being deployed; and (4) any challenges the Department of Treasury has in leveraging AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) and hiring or retaining staff with expertise in AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) technology and potential solutions to overcome such challenges.
(b) 4 The report required under subsection (a) shall include regulatory proposals and legislative recommendations that facilitate the responsible adoption of AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1) within the financial services industry.
(c) 4 The Secretary shall publish a request for information to collect public input to inform the drafting of the report required under subsection (a). (2) The Secretary shall consult with the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation Board, the Comptroller of the Currency, the Director of the Bureau of Consumer Financial Protection, and the National Credit Union Administration Board to inform the drafting of the report required under subsection (a).
Requires the Secretary of the Treasury to submit and publicly publish a report within 180 days examining AI benefits and risks as they relate to financial system national security, including compliance with the Bank Secrecy Act, sanctions laws, and cybersecurity threats. The report must include regulatory and legislative recommendations. The Secretary must publish a request for information and consult with the five banking regulators named in Section 2.
All obligations fall on the Department of the Treasury. No private-sector compliance duties are created.
(1) The term ''AIAIThe term "AI" has the meaning given the term "artificial intelligence" under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).Section 6(1)'' has the meaning given the term ''artificial intelligence'' under section 5002 of the National Artificial Intelligence Initiative Act of 2020 (15 U.S.C. 9401).
(2) The term ''Bank Secrecy ActBank Secrecy ActThe term "Bank Secrecy Act" means— (A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b); (B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and (C) subchapter II of chapter 53 of title 31, United States Code.Section 6(2)'' means— (A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b); (B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and (C) subchapter II of chapter 53 of title 31, United States Code.
Provides definitions for two terms used throughout the Act: AI, which incorporates by reference the definition of "artificial intelligence" from the National Artificial Intelligence Initiative Act of 2020, and Bank Secrecy Act, which enumerates the three statutory components of the BSA. This section creates no compliance obligations.