Federal Agencies Issue Joint Statement on Artificial Intelligence

On April 25, 2023, the CFPB, DOJ’s Civil Rights Division, EEOC, and FTC (collectively, the Agencies) issued a joint statement highlighting that they intend to apply their enforcement authorities to automated systems that use artificial intelligence (AI).

The statement cites to previous issuances by the individual Agencies on this issue.  For example, the statement cited to CFPB Circular 2022-03, previously covered by WBK here, which stated that federal consumer financial laws and adverse action requirements apply regardless of the technology being used and that using complicated or opaque technology cannot justify noncompliance with federal law.

The Agencies also state that they resolve to monitor the development and use of automated systems and promote responsible innovation in an effort to ensure that these rapidly evolving automated systems are developed and used in a manner consistent with the federal laws that the Agencies enforce.

CFPB Director Rohit Chopra issued a concurrent statement indicating that the CFPB is taking actions to protect consumers from the potentially harmful uses of automated systems, including “digital redlining,” bias in home valuations, algorithmic advertising, and black box credit models.