Webinar | May.05.2023 | 3:30pm - 4:30pm (Central Standard Time)Virtual
Please join members of Orrick’s Artificial Intelligence & Machine Learning team to discuss financial services implications stemming from the joint statement issued last week by the Consumer Financial Protection Bureau (CFPB), the Department of Justice (DOJ), the Federal Trade Commission (FTC) and the Equal Employment Opportunity Commission (EEOC) warning that the use of artificial intelligence (AI) “has the potential to perpetuate unlawful bias, automate unlawful discrimination, and produce other harmful outcomes.”
The agencies also stated that their existing legal authorities apply to AI and other “innovative technologies,” and identified skewed data and datasets, opaque and complex models, and tool exploitation as potential discrimination sources. While not mentioned in the statement, the agencies are likely to focus on differential outcomes rather than a discriminatory process, drawing upon disparate impact and pattern-or-practice theories to assess AI tools.
This update will cover the explicit text of the statement (drawing on the team’s deep experience in fairness regulation and AI tools) and read between its lines to look at the potential risk implications for financial services and fintech companies developing AI or using AI to offer products and services.
CLE Credits Available: Y