Following Executive Order 14179, “Removing Barriers to American Leadership in Artificial Intelligence,” the Trump Administration calls for the removal of red tape and onerous regulation related to AI.

While it is true that innovative AI can improve and strengthen the banking industry and benefit consumers, AI also brings an array of threats. For example, Sam Altman recently warned that AI may bring a “significant impending fraud crisis” to the banking sector because of its ability to evade current fraud detection systems.

The Trump Administration is ignoring such warnings with its rollout of a comprehensive AI plan centered on deregulation. This action directly contradicts the U.S. Treasury report, which Better Markets supported, that presented a balanced view of AI’s uses, opportunities, and risks throughout the financial services industry.