The top U.S. consumer financial watchdog is sharpening his focus on lenders’ use of artificial intelligence when making credit decisions, signaling that fresh restrictions loom for financial firms.
Rohit Chopra, director of the Consumer Financial Protection Bureau, indicated that new regulation may be coming soon. The CFPB’s broad mandate means that everyone from banks to online lenders and mortgages-servicing firms could be affected.
“We are working on a very broad waterfront when it comes to AI, especially the use of data from a discrimination perspective from all facets of the underwriting process,” said Chopra during an interview late Wednesday in his office near the White House. One big challenge is technology that creates content such as images and text based off a user’s prompt, he said, referring to generative AI.
