Requires each federal financial regulator to set up an AI Innovation Lab, or designate an office to serve as one, where regulated firms can test artificial intelligence projects under alternative compliance terms instead of facing enforcement actions.

• Lets regulated financial entities apply, starting one year after enactment, to run AI test projects with a waiver or modified version of a specific regulation under an alternative compliance strategy
• Requires the applicable regulator to decide within 120 days, with one possible 120-day extension, and deems an application approved if the agency does not act in time
• Bars enforcement against an approved project, while letting agencies deny applications, enjoin active projects that pose immediate danger or certain risks, and retain fraud and market manipulation authority
• Requires regulators to issue implementing rules within 180 days and to submit annual reports on project outcomes for eight years, without naming participating entities

• Financial Services Committee (House)

Finance and Financial Sector