July 02, 2021

NAFCU to regulators: CUs are committed to responsible AI innovation


In response to a request for information regarding credit unions use of artificial intelligence (AI) from the federal financial regulators – including the NCUA – NAFCU submitted comments detailing how credit unions leverage AI.

"Credit unions are leveraging AI to support a variety of operational needs to better deliver safe and affordable services to their members,” wrote NAFCU’s Senior Counsel for Research and Policy Andrew Morris. “Common business functions that integrate AI solutions include underwriting, risk management, marketing, and automation of customer service operations."

Morris continued to note NAFCU’s support for regulators to allow credit unions to create pilot programs that provide safe harbors for specific AI applications, and recommended that the NCUA form a working group of credit union industry stakeholders to pursue targeted solutions to leverage AI.

Morris concluded his comments by noting that “credit unions are committed to pursuing responsible innovation, but to meaningfully pursue AI and ML technologies requires a supervisory approach that does not add to already high examination burden.”

NAFCU will continue to work with the regulatory agencies to ensure credit unions are able to innovate and use new AI technologies to better serve their members.

Read NAFCU’s full comments to the financial regulators here.