United StatesEstablishes AI Innovation Labs allowing regulated financial firms to run AI pilots
It could speed deployment of AI in banking and markets by letting firms run supervised tests under temporary, agency-approved alternative rules, affecting services and risks customers face.
What it does
Requires each federal financial regulator to establish or designate an "AI Innovation Lab" to allow supervised AI test projects by regulated entities.
Allows regulated entities to apply for temporary alternative compliance strategies to run AI test projects, with a required application describing technology, risk controls, termination, scope limits, and business impact.
Sets agency review timelines: a 120-day decision period (one 120-day extension allowed) and a rule that an application is deemed approved if no decision is made within the allowed time.
Permits joint agency review and requires notice to other agencies when multiple regulators have jurisdiction; agencies may intervene and require joint approval.
Requires agencies to issue implementing regulations within 180 days and to report aggregated outcomes on AI test projects annually to Congress for several years.
Argument forCreates a supervised pathway for firms to test AI under tailored oversight, which can speed innovation while requiring risk controls and termination dates.
Argument againstTemporary waivers or modified enforcement could reduce regulatory protections and, if not tightly controlled, increase consumer or investor harm from faulty or biased AI systems.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To President
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 24Reported (Amended) by the Committee on Financial Services. H. Rept. 119-713.Latest
- Jun 24Placed on the Union Calendar, Calendar No. 619.
- May 13Committee Consideration and Mark-up Session Held
- May 13Ordered to be Reported (Amended) by the Yeas and Nays: 33 - 19.
- 2025
- Jul 29Introduced in House
- Jul 29Referred to the House Committee on Financial Services.Introduced
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