ABA Letter to NTIA on AI Accountability Policy

Ms. Stephanie Weiner
Acting Chief Counsel
National Telecommunications and Information Administration
Department of Commerce
1401 Constitution Avenue NW, Room 4725
Washington, DC 20230

Dear Ms. Weiner,

The American Bankers Association (ABA) appreciates the opportunity to comment on the National Telecommunications and Information Administration's (NTIA) Request for Comment on AI Accountability Policy (RFC). Artificial Intelligence (AI) is top of mind for financial institutions and their customers, not only for their current operations but also for their strategic development. It is imperative that policymakers recognize the unique role that banks play in the economy, and their long history with AI from both business and compliance perspectives.

In this comment, ABA stresses that understanding the realities of the AI supply chain and overall ecosystem (developer, deployer, end user) is essential to an effective federal AI accountability policy. The adoption of standards, certifications, and disclosure mechanisms is a critical outgrowth of this understanding. Further, ABA urges policymakers to follow an industry-focused approach in order to minimize the impact to businesses that already have a history of complying with laws and regulations related to AI. Finally, regulations should be risk-based and tailored to particular use cases, including those stemming from the emergent technology known as generative AI.

ABA wishes to emphasize that AI is primarily an umbrella terms for various enabling technologies and is not a standalone program, product, or service. Rather, it is embedded into various operations, such as fraud prevention, cybersecurity protection, customer experience optimization, money management, risk management, and lending. Many of the risks associated with these activities are present irrespective of the use of AI. However, it is imperative to maintain effective controls in order to adequately mitigate these risks. In the same way that the bank is ultimately responsible for the actions and omissions of its service providers, the bank is the guarantor of its AI applications.

ABA previously filed comment letters on the subject of AI. Since those letters were filed, there has been a sea change in the AI landscape. Firstly, the advent of prompt-based generative AI (as exemplified by ChatGPT) has commanded the world's attention and introduced an atmosphere of legal and regulatory uncertainty in its wake. While many banks have blocked employees from using ChatGPT due to concerns around privacy and cybersecurity implications, they are currently evaluating ways to deploy other generative AI applications in a safe and sound manner within the existing risk management framework.

Secondly, there is activity in the regulatory space around the world, which could result in a confusing patchwork of requirements or expectations. For example, the European Union (EU) is working towards its AI Act,5 which could chill innovation due to its rigidity if it passes. Moreover, EU and US officials are reportedly working on a voluntary AI code of conduct as a stopgap measure, which itself may not be geared towards US interests.

Download the comment letter to read the full text.