AI has value in the ARM industry for consumers and businesses that regulators should consider when developing plans that mitigate risks and allowing for technology development.
07/11/2023 2:55 P.M.
3 minute read
ACA International outlined the use of artificial intelligence in the accounts receivable management (ARM) industry and recommendations for federal officials developing a national AI strategy in comments (PDF) filed this month.
The comments were in response to the White House Office of Science and Technology (OSTP) Policy’s Request for Information (PDF) on national AI priorities.
The programs under consideration through the request for information (RFI) include an updated strategic plan (PDF) to prioritize investments and goals in AI research and development, as well as a request for public comment on critical AI issues, such as mitigating AI risks.
The proposed programs also reference a new report on the risks and opportunities related to AI in education from the U.S. Department of Education’s Office of Educational Technology. The report, Artificial Intelligence and the Future of Teaching and Learning: Insights and Recommendations (PDF), summarizes “the risks and opportunities related to AI in teaching, learning, research, and assessment.”
AI in the ARM Industry
ACA stressed in its comments that the ARM industry’s use of AI allows consumers to access the information and certain services they need when it is most convenient for them, which is often outside of normal business hours.
AI is a tool that is essential to allow consumers flexibility in managing account information and payments, and ACA noted that national AI priorities should reflect these benefits of the technology for consumers and businesses.
AI technologies have also improved the capabilities of ACA members in a way that benefits consumers, such as call analytics that allow companies to reach a higher volume of consumers more efficiently.
This in turn allows companies to just as efficiently share the information consumers need about their financial health as well as steps on how to address any issues or make payments more quickly.
Lastly, ACA clarified in the comments that any definition of AI in national regulations should not be overly broad.
“The White House and federal regulatory agencies must work closely with the industry to garner data and research to understand the impacts of regulation before moving forward,” said ACA CEO Scott Purcell. “Any framework to regulate the use of AI in the U.S. should be risk-based and focus on mitigating potential harms to consumers and should not focus on back-end processes that allow businesses to run more efficiently.”
Congressional and Regulatory Actions
In April, several federal agencies released a policy statement on the use of artificial intelligence products under existing laws, particularly to ensure that consumers aren’t discriminated against by the algorithms companies use for loans or other financial products, ACA previously reported.
In addition to the Consumer Financial Protection Bureau, the Federal Trade Commission, Department of Justice Civil Rights Division and Equal Employment Opportunity Commission participated in the interagency statement (PDF).
Meanwhile, lawmakers have their own proposals in the works as AI technology continues to expand in the U.S, Roll Call reports.
A bipartisan proposal in the U.S. House of Representatives would create a national commission to study AI technology, and U.S. Sen. Charles Schumer, D-N.Y., has proposed a regulatory framework, according to the article.
The commission would recommend “regulatory and enforcement actions” to Congress.
Schumer’s proposal, the Security, Accountability, Foundations, Explain (SAFE) Innovation framework (PDF), presents steps to “protect, expand, and harness AI’s potential,” his office said, according to Roll Call.
Related Content from ACA International:
Recording Available – ACA Huddle: Dark Patterns and Commercial Surveillance—What You Need to Know
CFPB Circular Outlines Enforcement of “Dark Patterns”
Dark Patterns: What You Need to Know
Federal Agencies Announce AI Enforcement and Consumer Protections
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