,,ii  #aai? ,,congress  #b;d ,session   
,s4 #eceh  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #f1 #bjbf,mr4   
,w>n] 7= himself & ,mr4 ,k5n$y7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to am5d ! ,f9ancial ,/ability  
,act ( #bjaj to provide ! ,f9ancial     
,/ability ,ov]sight ,c\ncil ) duties    
reg>d+ artificial intellig5ce 9 !       
f9ancial sector1 & = o!r purposes4  #a4 
,%ort title ,?is ,act may be cit$ z !   
,f9ancial ,artificial ,intellig5ce ,risk
 ,r$uction ,act or ! ,,fairr ,act4  #b4 
,special provisions reg>d+ artificial   
intellig5ce 9 ! f9ancial sector  7a7 ,9 
g5]al ,subtitle ,a ( ! ,f9ancial        
,/ability ,act ( #bjaj 7#ab ,u4,s4,c4   
#ecba et seq47 is am5d$ by add+ at ! end
 ! foll[+3  #abf4 ,special provisions   
reg>d+ artificial intellig5ce 9 !       
f9ancial sector  7a7 ,def9ition ,9 ?is  
section1 ! t]m artificial intellig5ce   
has ! mean+ giv5 ! t]m 9 section #ejjb (

 ! ,national ,artificial ,intellig5ce   
,initiative ,act ( #bjbj 7#ae ,u4,s4,c4 
#idja74  7b7 ,coord9ation1 report1 &    
recomm5dations ,! ,c\ncil %all coord9ate
 ) memb] ag5cies ) reg>d to pot5tial    
risks to ! /ability ( ! f9ancial sy/em  
pos$ by artificial intellig5ce1         
includ+-- 7#a7 direct ! ,(fice (        
,f9ancial ,rese>*1 z appropriate1 to    
conduct rese>* into ! uses ( artificial 
intellig5ce by f9ancial in/itutions &   
entities provid+ s]vices to or p]=m+    
functions on behalf ( f9ancial          
in/itutions2  7#b7 id5tify ?reats to !  
/ability ( ! f9ancial sy/em pos$ by !   
use ( artificial intellig5ce tools &    
te*nologies1 su* z-- 7,a7 ! g5]ation &  
use ( false repres5tations ( ev5ts or ! 
lik5ess1 spee*1 or actions ( p]sons by  
malign actors to manipulate f9ancial    
m>kets1 in/itutions1 or in/rum5ts1 or to
 cause disruption 9 f9ancial m>kets2    
7,b7 ag5t deploym5t & developm5t1       
includ+ specific gaps 9 exi/+ laws      
7includ+ regulations7 reg>d+ liability =

 f9ancial in/itutions & consum]s =      
unau?oriz$ transactions t c\ld be       
initiat$ or complet$ by ag5ts1 includ+ !
 fragility1 if any1 creat$ by !         
conc5tration ( economic activity1       
capital =mation1 & decision-mak+ conc]n+
 artificial intellig5ce infra/ructure   
provid]s2 &  7,c7 any o!r acts or       
practices associat$ ) ! use or assi/ance
 ( artificial intellig5ce tools or      
te*nologies t ?reat5 ! /ability ( !     
f9ancial sy/em2  7#c7 n lat] ?an #ahj   
days aft] ! date ( enactm5t ( ?is       
section1 9 consultation ) ! memb]       
ag5cies1 f9ancial in/itutions1          
securities m>ket p>ticipants1 & entities
 provid+ s]vices to or p]=m+ functions  
on behalf ( f9ancial in/itutions or     
securities m>kets p>ticipants1 submit to
 ! ,committee on ,bank+1 ,h\s+1 & ,urban
 ,affairs ( ! ,s5ate & ! ,committee on  
,f9ancial ,s]vices ( ! ,h\se (          
,repres5tatives a report t-- 7,a7       
id5tifies ! ?reats describ$ 9 p>agraph  
7#b72  7,b7 ! tra9+1 developm5t1        

deploym5t1 & prolif]ation ( artificial  
intellig5ce tools & te*nologies t are   
p>ticul>ly suit$ = cyb]security tasks1  
includ+ specific aptitudes = id5tify+   
vuln]abilities & develop+ tools &       
te*niques to exploit su* vuln]abilities2
  7,c7 id5tifies specific gaps 9 ! exi/+
 regulations1 guidance1 & exam9ation    
/&>ds ( ! memb] ag5cies t prev5t        
effective & compreh5sive responses by   
ea* ( ! memb] ag5cies to ! ?reats       
describ$ 9 p>agraph 7#b72 &  7,d7 makes 
specific recomm5dations = address+ !    
gaps id5tifi$ 9 subp>agraph 7,b71       
includ+1 z appropriate1 recomm5dations  
reg>d+ implem5tation ( ! recomm5dations 
9 ! ,cyb]security ,in=mation ,%eet      
publi%$ by ! ,national ,security ,ag5cy1
 ,f$]al ,bureau ( ,inve/igation1 &      
,cyb]security & ,infra/ructure ,security
 ,ag5cy on ,septemb] #ab1 #bjbc2 &  7#d7
 id5tify1 z appropriate1 opportunities =
 ! use ( artificial intellig5ce         
te*nologies 9 f9ancial regulation &     
sup]vision1 specify+ t any use (        

artificial intellig5ce by ! ag5cies 9   
regulation & sup]vision %\ld be         
transp>5t & disclos$ to _! regulat$     
entities z appropriate4  7c7            
,congressional review ,n lat] ?an #cj   
days aft] ! date on :i* ! relevant      
congressional committees receive !      
report requir$ "u subsection 7a71 !     
committees %all review ! report & submit
 comm5ts & recomm5dations !reon4  7d7   
,implem5tation ( c\ncil recomm5dations  
7#a7 ,9 g5]al ,^u review ( comm5ts &    
recomm5dations "u subsection 7c71 !     
,c\ncil %all comm5ce action "u !        
proc$ures prescrib$ 9 section #abj )    
reg>d to implem5tation ( !              
recomm5dations by ea* ( ! memb] ag5cies4
  7e7 ,congressional review act ,!      
provisions ( *apt] #h ( title #e1 ,unit$
 ,/ates ,code1 %all apply z appropriate 
to rules issu$ by ! memb] ag5cies "u ?is
 section4  7f7 ,sc5>io-,bas$ ex]cises ,!
 ,f$]al & ,bank+ ,in=mation             
,infra/ructure ,committee sponsor$ by ! 
,presid5t's ,work+ ,gr\p on ,f9ancial   

,m>kets %all1 9 consultation )          
private-sector entities & o!r relevant  
gov]nm5tal entities-- 7#a7 initiate a   
s]ies ( sc5>io-bas$ ex]cises to te/ !   
effectiv5ess ( def5ses aga9/ f9ancial   
m>ket disruptions associat$ ) ! use or  
assi/ance ( artificial intellig5ce      
te*nologies2 &  7#b7 make recomm5dations
 = ongo+ improvem5ts 9 detection1       
prev5tion1 & mitigation ( su*           
disruptions4  4  7b7 ,te*nical & con=m+ 
am5dm5t ,! table ( sections = !         
,dodd-,frank ,wall ,/reet ,re=m &       
,consum] ,protection ,act 7#ab ,u4,s4,c4
 #ecja7 is am5d$ by ins]t+ aft] ! item  
relat+ to section #abe ! foll[+3  #abf4 
,special provisions reg>d+ artificial   
intellig5ce 9 ! f9ancial sector4  4  #c4
 ,enhanc$ au?ority to ov]see ?ird-p>ty  
provid]s ( artificial intellig5ce & o!r 
s]vices to f9ancial in/itutions ,section
 #bjf;,a ( ! ,f$]al ,cr$it ,union ,act  
7#ab ,u4,s4,c4 #aghf;a7 is am5d$-- 7#a7 
9 subsection 7a77#a71 by /rik+ t &      
ins]t+ an2  7#b7 9 subsection 7c77#b71 9

 ! matt] prec$+ subp>agraph 7,a71 by    
ins]t+ 1 9 a mann] & me?od prescrib$ by 
! ,bo>d1 aft] ,bo>d2 &  7#c7 by /rik+   
subsection 7f74  #d4 ,regulation (      
s]vice provid]s by ! ,f$]al h\s+ f9ance 
ag5cy ,subp>t ,a ( "p #b ( subtitle ,a (
 ! ,f$]al ,h\s+ ,ent]prises ,f9ancial   
,safety & ,s\ndness ,act ( #aiib 7#ab   
,u4,s4,c4 #deda et seq47 is am5d$ by    
add+ at ! end ! foll[+3  #acbi4         
,regulation & exam9ation ( c]ta9 s]vice 
provid]s  ,:5ev] a regulat$ entity or ! 
,(fice ( ,f9ance causes to be p]=m$ =   
itself1 by contract or o!rwise1 any     
activity t is p]missible = ! regulat$   
entity or ! ,(fice ( ,f9ance1 :e!r on or
 (f its premises--  7#a7 su* p]=mance   
%all be subject to regulation &         
exam9ation by ! ,director to ! same     
ext5t z if su* activity 7 be+ p]=m$ by  
su* entity or ,(fice itself on its own  
premises2 &  7#b7 ! regulat$ entity or  
,(fice ( ,f9ance %all notify ! ,director
 ( ! exi/5ce ( ! s]vice relation%ip n   
lat] ?an #cj days aft] ! e>li] (--  7,a7

 mak+ ( su* s]vice contract2 or  7,b7 ! 
p]=mance ( ! activity by ! s]vice       
provid]4  4  #e4 ,,sec rulemak+ on      
artificial intellig5ce ,section #c ( !  
,securities ,ex*ange ,act ( #aicd 7#ae  
,u4,s4,c4 #gh;c7 is am5d$ by add+ at !  
end ! foll[+3  7i7 ,rulemak+ reg>d+     
artificial intellig5ce  7#a7 ,def9itions
 ,9 ?is subsection3 7,a7 ,artificial    
intellig5ce ,! t]m artificial           
intellig5ce has ! mean+ giv5 ! t]m 9    
section #ejjb ( ! ,national ,artificial 
,intellig5ce ,initiative ,act ( #bjbj   
7#ae ,u4,s4,c4 #idja74  7,b7 ,cov]$     
p]son ,! t]m cov]$ p]son-- 7i7 means a  
p]son t is requir$ by a provision ( ?is 
title1 or by a rule or regulation "u ?is
 title1 to ma9ta9 policies1 proc$ures1  
or controls2 &  7ii7 includes-- 7,i7 an 
issu] t has a class ( securities regi/]$
 pursuant to section #ab2  7,,ii7 an    
issu] t is requir$ to file reports "u   
section #ae7;d72  7,,iii7 a brok]2      
7,,iv7 a deal]2  7,v7 a security-bas$   
swap deal]2 &  7,,vi7 a self-regulatory 

organization4  7#b7 ,requirem5t  7,a7 ,9
 g5]al ,n lat] ?an #ahj days aft] !     
enactm5t ( ?is section ! ,commission    
%all1 by rule or regulation1 impose     
specific requirem5ts on ea* cov]$ p]son 
to ensure t ! policies1 proc$ures1 or   
controls describ$ 9 p>agraph            
7#a77;,b77i7 ma9ta9$ by ! cov]$ p]son-- 
7i7 address ! use ( artificial          
intellig5ce by ! cov]$ p]son2 &  7ii7   
are reasonably design$ to ensure        
compliance ) ! requirem5ts ( ?is title4 
7,b7 ,proc$ures ,9 c>ry+ out subp>agraph
 7,a71 ! ,commission %all-- 7i7 id5tify 
& require gov]nance measures ) respect  
to te/+1 deploym5t1 monitor+1 human     
ov]sight1 p]missions1 escalation        
proc$ures1 & use limitations applicable 
to artificial intellig5ce sy/ems2 &     
7ii7 consid] ! ext5t to :i*-- 7,i7      
artificial intellig5ce sy/ems are       
develop$1 controll$1 modifi$1 or op]at$ 
by a cov]$ p]son z comp>$ to ?ird-p>ty  
provid]s2 &  7,,ii7 control is ex]cis$  
by a cov]$ p]son ov] ! actions (        

artificial intellig5ce sy/ems4  4  #f4  
,rules ( con/ruction  7a7 ,def9itions   
7#a7 ,artificial intellig5ce ,! t]m     
artificial intellig5ce has ! mean+ giv5 
! t]m 9 section #ejjb ( ! ,national     
,artificial ,intellig5ce ,initiative    
,act ( #bjbj 7#ae ,u4,s4,c4 #idja74     
7#b7 ,securities laws ,! t]m securities 
laws has ! mean+ giv5 ! t]m 9 section   
#c7;a7 ( ! ,securities ,ex*ange ,act (  
#aicd 7#ae ,u4,s4,c4 #gh;c7a774  7b7    
,rules ,no?+ 9 ?is ,act1 or any am5dm5t 
made by ?is ,act1 may be con/ru$ to--   
7#a7 limit ! securities laws su* t      
artificial intellig5ce may be us$ 9 a   
mann] t w\ld contrav5e any ( !          
securities laws2 or  7#b7 provide t !   
use ( artificial intellig5ce excuses    
compliance ) any obligation "u !        
securities laws4