S2528119th CongressWALLET

Unleashing AI Innovation in Financial Services Act

Sponsored By: Senator Mike Rounds

Introduced

Summary

AI Innovation Labs would create a formal program for regulated financial firms to run supervised AI test projects inside federal regulators. The bill sets an agency approval process, confidentiality and coordination rules, annual public reporting, and preserves fraud enforcement authority.

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  • Regulated entities: Banks, securities firms, credit unions, and other federally supervised firms could run approved AI pilots with reduced regulatory friction and limited enforcement exposure while the pilot is active. Projects must follow agency approval, termination, and confidentiality rules.
  • Financial regulators: Each registered financial regulator would establish an AI Innovation Lab to review and approve test projects, coordinate across agencies when projects span multiple regulators, and manage confidentiality and termination procedures.
  • Congress and consumers: Agencies must send aggregated findings, trends, and lessons to the Senate Banking Committee and House Financial Services Committee starting 2 years after enactment and then annually for 7 years. Reports may not name participants or disclose proprietary information and agencies retain authority to pursue fraud enforcement.

Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

AI Innovation Labs for Financial Firms

If enacted, each federal financial regulator would set up an AI Innovation Lab to let regulated firms run approved AI test projects. Firms would apply with a project plan, alternative compliance approach, risk and public-interest analysis, a proposed end date and size limits, and an economic-impact estimate. Agencies would have to decide within 120 days and could extend once by 120 days; if they do not act after the extension the application would be treated as approved. The rules would limit how an agency may enforce covered regulations during the test, let other agencies act only as the approval allows, and keep fraud and unsafe-practice enforcement. Agencies could only seek court orders to stop a project for immediate consumer or investor danger, market risks, losses to federal insurance funds, money-laundering or terrorist-financing risks, or national security risks. Sponsor data given to agencies would need secure storage. Regulators would have 180 days after enactment to write the implementing rules, with a 60-day public comment period. Approved projects must run at least one year unless extended, and the rules must spell out modification, confidentiality, and multi-agency coordination procedures.

Which regulators oversee AI projects

If enacted, the bill would define key terms and say which federal regulator is the appropriate one for different institutions and activities. It would define an "AI test project" as a financial product or service that makes substantial use of artificial intelligence and may be subject to Federal regulation. The bill would use existing law to define "financial product or service" and would say the business of insurance is not covered. That clarity would guide who must apply to run AI tests.

Sponsors & CoSponsors

Sponsor

Mike Rounds

SD • R

Cosponsors

  • Martin Heinrich

    NM • D

    Sponsored 7/29/2025

  • Thomas Tillis

    NC • R

    Sponsored 7/29/2025

  • Andy Kim

    NJ • D

    Sponsored 7/29/2025

  • Mark Warner

    VA • D

    Sponsored 2/26/2026

Roll Call Votes

No roll call votes available for this bill.

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