Banking industry pushes back on CFPB’s warning over use of AI chatbots
Fox Business quotes CEI’s John Berlau on the Consumer Financial Protection Bureau’s recent advisory:
John Berlau, the Competitive Enterprise Institute’s director of finance policy, says the CFPB’s latest issue spotlight could be a sign it is trying to wade into AI regulation, which is beyond its authority.
“It appears that the CFPB, which has no particular expertise in AI and was not given authority by Congress for oversight of the field, is attempting to set itself up as an AI regulator,” Berlau told FOX Business. “The CFPB complains that AI may lead to ‘diminished customer service and trust,’ but levels of service are matters that can and should be handled by consumers.”
“A consumer is perfectly free to patronize a venue that utilizes more personal service if he or she is unsatisfied in dealing with AI,” he explained. “And a financial services firm providing deceptive or fraudulent information through AI should face the same penalties as those that may defraud and deceive through human employees.”
“In short,” he added, “the CFPB needs no extra regulatory power over financial firms that utilize AI chatbots.”