H.R.1734 - Preventing Deep Fake Scams Act (119th Congress)
Summary
H.R.1734, the "Preventing Deep Fake Scams Act," aims to address the emerging threat of artificial intelligence (AI) in the financial services sector. The bill establishes a Task Force on Artificial Intelligence in the Financial Services Sector. This task force is responsible for reporting to Congress on issues related to AI, particularly concerning deep fakes and their potential for fraud.
Expected Effects
The bill's primary effect will be the creation of a task force to study and report on the use of AI in finance. This task force will provide recommendations for legislation and regulation to protect consumers from AI-driven fraud. The report will include best practices for financial institutions and standard definitions for AI-related terms.
Potential Benefits
- Enhanced consumer protection against AI-driven financial fraud.
- Increased awareness and understanding of AI risks within the financial sector.
- Development of best practices for financial institutions to mitigate AI-related threats.
- Potential for more effective regulation of AI in finance.
- Standardization of AI terminology within the financial industry.
Potential Disadvantages
- The task force's recommendations may lead to increased regulatory burdens on financial institutions.
- The report's findings may not be implemented effectively or in a timely manner.
- The task force's focus on AI may divert attention from other important cybersecurity threats.
- The definition of AI terms may become outdated quickly due to rapid technological advancements.
- The task force's report may not fully address the complexities of AI in finance.
Constitutional Alignment
The bill aligns with the Constitution's implied powers to regulate commerce and protect citizens from fraud. Congress has the authority to create task forces and gather information to inform legislative decisions. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).