ICBA told Congress it believes artificial intelligence has the potential to help community banks meet regulatory burdens and expand access to credit, but thoughtful regulation is needed to ensure that innovation does not come at the expense of consumer protection or financial stability.
ICBA AI can help community banks if regulated properly
September 19, 2025 / By ICBA
ICBA told Congress it believes artificial intelligence has the potential to help community banks meet regulatory burdens and expand access to credit, but thoughtful regulation is needed to ensure that innovation does not come at the expense of consumer protection or financial stability.
ICBA told Congress it believes artificial intelligence has the potential to help community banks meet regulatory burdens and expand access to credit, but thoughtful regulation is needed to ensure that innovation does not come at the expense of consumer protection or financial stability.
Details: In a statement for the record for a House Financial Services Committee subcommittee hearing on AI in the financial system, ICBA:
Said it will work with Congress and regulators to ensure that community banks can safely and effectively leverage AI technologies.
Suggested AI legislation, regulation, and definitions be tailored to specific use cases and business lines.
Recommended that legislation includes safe harbors for banks using industry-standard AI tools and encouraged regulators to support innovation through pilot programs, advisory opinions, and clear supervisory expectations.
ICBA Advocacy: Prior to President Donald Trump’s release of an AI Action Plan this summer, ICBA issued a comment letter to the National Science Foundation that said AI has the potential to significantly enhance the operations of community banks by improving efficiency, strengthening risk management, and enhancing customer service, but regulatory frameworks must evolve.
Resources for Community Bankers: A recent Independent Banker magazine article offers tips for community banks that are developing policies on artificial intelligence.
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