H.R. 4801 — Unleashing AI Innovation in Financial Services Act

This section defines terms for the AI test project provisions, including an AI test project as a financial product, service, or activity under a financial regulatory agency's jurisdiction that makes substantial use of artificial intelligence and seeks a regulatory waiver or modification. It also defines the appropriate financial regulatory agencies, artificial intelligence, financial products and services, and regulated entities.

This section requires each financial regulatory agency to establish or designate an AI Innovation Lab. The lab enables regulated entities to experiment with AI test projects without unnecessary or unduly burdensome regulation or enforcement actions, including those that discourage the use of artificial intelligence to improve regulatory compliance.

This section establishes an AI Innovation Lab allowing regulated financial entities, beginning one year after enactment, to submit applications for AI test projects that propose alternative compliance strategies to waive or modify specific financial regulations. Applications must detail the AI technologies and goals, risk management policies including cybersecurity, public interest and efficiency benefits, limits on project size and duration, and an economic impact estimate, with joint approval required from all affected agencies and a 120-day review period.

This section requires each financial regulatory agency to submit an annual report on the outcomes of AI test projects to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services. Reports must begin no later than 2 years after enactment and continue each year for 7 years thereafter, include aggregated findings, trends, and lessons learned, exclude names of participating entities and proprietary information, and may contain a classified annex.