New Bill Proposes AI Test Labs for US Finance Firms
US Congress has introduced a bill targeting faster AI adoption in the financial sector by setting up regulatory sandboxes. These sandboxes will allow finance companies to experiment with AI under controlled conditions, balancing innovation with consumer protection.
Key Highlights
- Sandbox Labs: The bill mandates seven federal agencies to create AI Innovation Labs for supervised AI testing by banks and other financial firms.
- Safe Innovation: Bipartisan support focuses on encouraging rapid AI development while ensuring responsible usage.
- Action Plan: The legislation aligns with the US AI Action Plan, which advocates regulatory sandboxes for specific AI applications.
The bill, titled Unleashing AI Innovation in Financial Services Act (H.R. 4801), was introduced on July 30, 2025. It calls for regulatory flexibility, allowing financial firms to test AI solutions without facing excessive regulatory hurdles or enforcement risks.
Seven agencies will be tasked with establishing AI Innovation Labs. These agencies include the Federal Reserve, FDIC, Office of the Comptroller of the Currency, SEC, Consumer Financial Protection Bureau, National Credit Union Administration, and Federal Housing Finance Agency. Financial firms can submit AI proposals for review, with agencies required to respond within 120 days.
The bill is supported by a bipartisan group of lawmakers. Representative French Hill (R-AR), chair of the House Financial Services Committee, leads the effort. Other supporters include Representatives Richie Torres (D-NY), Bryan Steil (R-WI), Josh Gottheimer (D-NJ), and Senators Mike Rounds (R-SD), Andy Kim (D-NJ), Thom Tillis (R-NC), and Martin Heinrich (D-NM). It is currently under review by the House Financial Services Committee.
Recently, the federal government released a 23-page AI Action Plan aimed at accelerating AI infrastructure deployment and easing regulation. It also prohibits federal use of AI models that produce biased results prioritizing ideologies over accuracy. The plan stresses the importance of regulatory sandboxes to balance quick innovation with safe AI adoption.
Representative Hill emphasized the need to understand AI's impact across all sectors. He stated, “This act ensures federal financial agencies allow companies to experiment with AI through regulatory sandboxes. We look forward to exploring AI’s use in financial services and fostering innovation and collaboration between public and private sectors.”
Other lawmakers highlighted the responsibility to protect consumers and maintain US leadership in AI. Josh Gottheimer said, “We need smart safeguards to protect consumers, prevent abuse, and ensure safety. This commonsense bill allows experimentation while putting guardrails in place to strengthen consumer protections and keep American technology ahead.”
For finance professionals looking to deepen their AI knowledge and skills, exploring targeted AI courses can be a practical step. Resources like Complete AI Training’s AI tools for finance offer focused learning paths.
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