Press Releases

Yesterday, the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence, led by Subcommittee Chair Bryan Steil (WI-01), held a hearing to evaluate how financial regulators and firms are using AI.

On the Potential for Regulators to Use AI:

“AI is, of course, rapidly changing the way Americans live, work, and engage with our financial system. Last congress, we explored AI practices at financial services firms, regulators, and supervisors. Congressman Bill Foster and I served on Speaker Johnson’s and Minority Leader Jeffries’ bipartisan Congressional AI task force. … In all these efforts, we saw demonstrated how AI has the potential to boost efficiency, cut costs, and strengthen the tools used to protect consumers from fraud detection to anti-money laundering,” declared Chairman French Hill (AR-02).

On the Trump Administration’s Focus on Advancing U.S. Leadership in AI:

“If we think about what the Biden Administration did, they really took an attitude to the extreme in his handling of artificial intelligence. Fortunately, President Trump has reversed course on this issuing Executive Order 14179 Remove Barriers to American Leadership in AI and releasing America's AI action plan in July of 2025. So, this approach can really accelerate AI development through a try-first approach that removes some of the red tape and onerous regulations,” said Subcommittee Chair Steil.

On AI and the Spread of Misinformation:

"I want to be able to dive into a couple of issues that have been addressed when it comes to artificial intelligence. First and foremost, the idea of misinformation and how it happens not only in the financial space but across our government. [AI] has lowered the barrier to entry. It's allowed misinformation to expand an accelerated rate. We saw it even this week, tragically, with the death of Charlie Kirk, Russian bots providing inception for everything from conspiracy theories to misaligning our own communications right here in our own country,” said Rep. Zach Nunn (IA-03).

On How the U.S. Can Win the AI Arms Race:

During his questioning, Rep. Bill Huizenga (MI-04) asked, “We often hear of an arms race with China that, if lost, would threaten our national security and the United States global economic dominance … how can Congress and the U.S. Government writ large, ensure that the United States outpaces China in the AI space?" To which Dr. Christian Lau, Co-Founder and President, Dynamo AI responded, “… combining open marketplaces that foster innovation allow different folks to compete, and then we get to choose the best ones for our use cases, is absolutely essential here for us to be competitive in this arms race.”

“This is a technology that will have a significant impact on how American companies and consumers engage with our evolving financial systems. In order for the United States to remain a global leader in innovation, we must establish clear rules of the road that allow the free market to thrive, and we must do so thoughtfully and effectively,” said Rep. William Timmons (SC-04).

On How to Safeguard from AI Fraud:

“…we're in a moment where the defense has to keep up with the offense, right. We want to make sure that our financial institutions are empowered to have the same tools to detect fraud that the fraudsters are using to advance it. What's most important is that our institutions are whether they're small banks, whether they're large ones, that they have access to that state of the art screening technology,” said Rep. John Rose (TN-06).

Witnesses Echoed the Work of the Committee:

Dr. David Cox, Vice President, AI Models, IBM Director, MIT-IBM Watson AI Lab said, “Security must be embedded throughout the AI lifecycle — from data gathering and preprocessing, to model training and development, to deployment and usage. A robust, risk-based approach secures not only the data and the models, but also the infrastructure they depend upon. This includes access controls, encryption, anomaly detection, and machine learning detection and response (MLDR) capabilities designed to defend against evolving threats. IBM’s integrated governance program (IGP) puts this into practice. It shifts away from reactive compliance toward continuous oversight across data, privacy, security, and AI systems. By embedding compliance into day-to-day operations, IBM is able to deliver AI solutions faster while maintaining the highest levels of trust and accountability.”

Dr. Christian Lau, Co-Founder and President, Dynamo AI said, “To date, financial institutions have looked to AI primarily to enhance productivity to derive return on investments, increase worker and operational efficiency, and learn how to establish effective AI governance foundations. This takes many forms, including AI-powered chatbots that help employees understand company policies and business line standards to better execute processes and engage with customers and colleagues. This also is evident in the rapid development of AI used to generate code for technology systems. I expect AI to further extend across the financial services value chain, including financial product operations, investment 3 analysis, and customer experience over the near term. Additionally, financial regulators themselves are starting to look to AI as a tool to support market oversight and monitoring of potential financial misconduct in the marketplace.”

Mr. Matthew Reisman, Director, Privacy and Data Policy, Center for Information Policy Leadership said, “For years, machine learning has strengthened financial services institutions’ ability to combat fraud, provide richer and more tailored services to existing customers, and extend services to new ones. More recently, generative AI has boosted productivity across functions, from software development to customer service. And we are now in the early days of agentic AI, which shows promise for enhancing the experiences of businesses and customers alike. Potential applications in the sector are extensive, from streamlining Know Your Customer processes, to back-office operations like payroll and invoicing, to online banking, to shopping powered by agentic commerce.”

Mr. Daniel Gorfine, Founder & CEO, Gattaca Horizons; Former Chief Innovation Officer & Director of LabCFTC said, “AI applications in financial services have already yielded tremendous benefits to consumers, small businesses, market participants, and service providers, and regulators tasked with supervising financial institutions, protecting consumers, and ensuring market integrity. By processing large data sets, AI tools can offer predictive insights and analytics that allow for more accurate, efficient, and low-cost decision-making, including in the context of determining creditworthiness when a traditional credit score may preclude access.11 Importantly, especially in higher-risk applications, humans are often “in the loop,” with AI helping to inform, augment, and improve their work or decision-making.”