European financial firms are lagging behind in the adoption of artificial intelligence (AI), just as US lawmakers move to step up AI oversight in the banking and healthcare sectors, with a new House resolution targeting AI in finance, and California’s AI in healthcare law gaining attention in Congress as a potential national model.
This surge in activity comes as EY reports that only 9% of European financial institutions consider themselves leaders in AI, while 72% of them plan to increase their investments in AI despite the regulatory uncertainty.
AI Monitoring in Finance
U.S. Reps. Patrick McHenry, R-N.C., and Maxine Waters, D-Calif., presented a House Resolution calling for stricter oversight of AI in banking and housing.
The bipartisan measure directs the House Financial Services Committee to oversee how AI is reshaping everything from mortgage approval to stock trading. “Given the crucial role of financial and real estate markets, the Financial Services Commission should play a leading role in overseeing the adoption of artificial intelligence,” the resolution states.
While recognizing the benefits of AI in fraud prevention and customer service, the resolution highlights several concerns. These include potential biases in lending decisions, cybersecurity risks, and the challenge small community banks face in keeping up with AI technology.
The measure directs regulators to enforce anti-discrimination laws and assess oversight gaps as the use of AI expands. He also focuses on protecting consumer data privacy and studying the impact of AI on financial sector jobs, while pushing for the United States to continue playing a leading role in the responsible development of AI.
Congress considers California law
Lawmakers in the U.S. House of Representatives are examining California’s new approach to regulating AI in health care as a potential model for federal legislation. Political reports.
Since January, California law requires insurers to supervise prior authorization requests processed using AI. The legislation, backed by the American Medical Association, comes as insurers like United Healthcare and Cigna face class-action lawsuits over alleged AI-based denials of inappropriate care.
Rep. Ami Bera, Democrat of California, a member of the House AI task force, told Politico she would evaluate the law’s effectiveness before considering national adoption.
“We will probably approach it by seeing the impact of the law“, Bera said. “Does this streamline cost reduction? Does it not hinder cost reduction? If it does all of this, it could become a model nationwide.”
In October, the AMA House of Delegates passed a similar policy requiring medical review of refusals of AI-recommended care. The congressional task force plans to release recommendations on AI regulation later this month, potentially including a proposal to elevate the group to select committee status.
California’s AI health care law, authored by Sen. Josh Becker of southern suburban San Francisco, requires insurers to oversee AI-based prior authorization decisions. The legislation addresses growing concerns about automated insurance denials, as large insurers face class-action lawsuits over alleged inappropriate use of AI in coverage decisions.
European finance is lagging behind when it comes to AI
A new EY survey reveals that only 9% of European financial services companies consider themselves ahead in AI adoption, with most still ahead early implementation steps. The study, published on December 2 and covering companies with a market capitalization of €880 billion, shows that 90% of them have adopted AI to some extent.
“GenAI is growing faster than many other recent technological innovations and requires progressive new skills,” Omar Ali, EY global head of financial services, said in a statement. press release. “Companies that accelerate regulatory preparations, develop an appropriate risk and control framework, and deploy essential new training and development programs their entire staff – not just a few technicians – will stand out from the competition.
The survey reveals that 72% of executives plan to increase their investments in GenAI in the coming months. However, only 11% feel prepared for upcoming regulations and 15% do not have a regulatory framework on AI risks.
While 78% of executives recognize that their staff lacks strong AI capabilities, only 25% have training programs in place. Sixty-six percent of executives believe AI could impact up to a quarter of current finance functions within a year.
For entry-level positions, 59% of leaders expect significant changes, but only 24% plan to restructure these roles, and 35% have taken no action to address AI’s impact on the business. junior staff.
