Comment on Financial Institutions’ Use of Artificial Intelligence, including Machine Learning

Abstract

These Comments, submitted in response to the Consumer Financial Protection Bureau's Request for Information: Financial Institutions' Use of Artificial Intelligence, including Machine Learning, explain:

(1) how and why financial institutions' use of Artificial Intelligence/Machine Learning (AI/ML) systems to produce and micro-target digital marketing and online sales processes will lead to deception, unfair treatment, and abuse of consumers,

(2) why current approaches to financial institution supervision and enforcement can be stymied by these uses of AI/ML systems,

(3) the risks to financial institutions of relying on AI/ML systems produced by third parties to design and micro-target digital marketing and online sales processes,

(4) the risk that financial institutions' AI/ML digital marketing and online sales systems will target protected classes of consumers for deception, unfair treatment, and abuse, and

(5) some suggestions for addressing these problems.

Keywords: artificial intelligence, machine learning, financial institutions, consumer protection, discrimination, marketing, consumer law enforcement, financial institution supervision

JEL Classification: G28, O33, O38