WASHINGTON, D.C. — A bipartisan, bicameral group of U.S. lawmakers on Wednesday introduced legislation aimed at promoting the responsible use of artificial intelligence in the financial services sector by creating regulatory “innovation labs” that would allow firms to safely test AI-driven projects.
The Unleashing AI Innovation in Financial Services Act, introduced on July 30, is being led in the House by Rep. Josh Gottheimer (D-N.J.), House Financial Services Committee Chairman French Hill (R-Ark.), and Reps. Ritchie Torres (D-N.Y.) and Bryan Steil (R-Wis.). In the Senate, the bill is backed by Sens. Mike Rounds (R-S.D.), Andy Kim (D-N.J.), Thom Tillis (R-N.C.), and Martin Heinrich (D-N.M.).
The bill would direct major federal financial regulatory agencies to establish AI Innovation Labs. These labs would allow regulated entities to apply for controlled testing environments—often referred to as regulatory sandboxes—where they could develop and experiment with artificial intelligence applications under government oversight.
“The United States must continue to lead the world in innovation,” said Rep. Gottheimer. “This commonsense bill will allow for experimentation while putting guardrails in place to strengthen consumer protections and help ensure that American technology stays ahead of the curve.”
Supporters of the bill emphasized the need for regulatory clarity and public-private collaboration as AI becomes increasingly embedded in financial systems.
“As AI continues to evolve, we must understand its full impact,” said Rep. Hill. “This bill ensures that federal agencies allow the companies they regulate to experiment with AI, while maintaining strong oversight.”
Rep. Torres said the legislation would help ensure that “innovation and oversight go hand in hand,” while Rep. Steil noted that the United States must “lead in artificial intelligence while responsibly addressing the risks that come with emerging technologies.”
In the Senate, Sen. Rounds praised the bill as a way to “foster innovation and economic growth by providing a controlled environment where new financial products and services that use AI can be tested.” Sen. Heinrich added that enabling real-life use cases within a structured framework is essential to developing responsible regulation.
Under the proposal, innovation labs would be established at key federal financial agencies, including the Federal Reserve, Office of the Comptroller of the Currency (OCC), Federal Deposit Insurance Corporation (FDIC), Securities and Exchange Commission (SEC), Consumer Financial Protection Bureau (CFPB), National Credit Union Administration (NCUA), and the Federal Housing Finance Agency (FHFA).
Entities would be required to apply through their primary regulator and demonstrate that their AI projects promote the public interest, improve efficiency or competitiveness, and do not pose a systemic risk to the financial system.
The legislation is among the latest federal efforts to strike a balance between promoting innovation and safeguarding consumer interests amid rapid advancements in AI.
