Source: Regulatory Compliance Watch

Regulatory Compliance Watch analyzes increasing oversight of artificial intelligence tools in financial services. Regulators are evaluating how AI impacts lending, trading, and fraud detection, particularly concerning algorithmic bias, data governance, and explainability.

Agencies such as the SEC and CFPB are reportedly exploring new guidelines to ensure fairness, prevent systemic risks, and establish accountability for automated decisions in finance. The article notes the tension between innovation and consumer protection, calling for sector-specific legal frameworks.

Compliance officers are advised to audit AI tools regularly and monitor legislative developments closely.