The regulatory landscape for AI in the US is fragmented, with states proposing their own regulations. California’s recent attempt to regulate AI through SB1047, which included provisions for a kill switch and legal liabilities for tech companies, failed to pass. This illustrates the complexities and challenges in creating a unified regulatory framework across the country.
Despite regulatory uncertainties, AI adoption in financial services is growing. About 50% of companies have embraced generative AI, while traditional AI applications have been integral for decades. AI has been crucial in areas such as anti-money laundering, fraud protection, and know-your-customer (KYC) processes. The full potential of AI in data management and client services is yet to be realised, with many applications still in internal testing stages.
This report highlights the key takeaways of a discussion had during a Finextra webinar, hosted for the PREDICT 2025 campaign, by a panel of industry experts. It includes:
- An overview of how AI has been adopted across the US thus far;
- How generative AI has been integrated into banking;
- Primary concerns with AI use; and
- Regional perspectives and approaches to AI regulation.