Tag Archives: Beth George

California’s Legislative Push on AI: A Wave of New Obligations and Prohibitions

by Beth George, Janet Kim, Sean Quinn, Madeline Cimino, and Christine Chong

Photos of authors

From left to right: Beth George, Janet Kim, Sean Quinn, Madeline Cimino, and Christine Chong (Photos courtesy of Freshfields Bruckhaus Deringer LLP)

California Governor Gavin Newsom recently signed into law a wave of legislation – totaling 19 laws – addressing the opportunities and risks of AI and placing California at the forefront of AI regulation in the United States. From election integrity to performer rights and healthcare transparency, the state has enacted measures aimed at managing potential negative impacts of the AI boom. At the same time, Governor Newsom vetoed SB 1047, the most comprehensive bill on his desk, signaling his interest in balancing the need for regulation to promote the safe deployment of AI with an interest in fostering growth in this important new sector of the California tech economy.

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Treasury and FSOC Sharpen Focus on Risks of AI in the Financial Sector

by Alison M. Hashmall, David Sewell, Beth George, Andrew Dockham, Megan M. Kayo and Nathaniel Balk

Photos of the authors

Top left to right: Alison M. Hashmall, David Sewell and Beth George. Bottom Left to Right: Andrew Dockham, Megan M. Kayo and Nathaniel Balk. (Photos courtesy of Freshfields Bruckhaus Deringer LLP)

On June 6-7, 2024, the Financial Stability Oversight Council (FSOC or the Council) cosponsored a conference on AI and financial stability with the Brookings Institution (the FSOC Conference).  The conference was billed as “an opportunity for the public and private sectors to convene to discuss potential systemic risks posed by AI in financial services, to explore the balance between encouraging innovation and mitigating risks, and to share insights on effective oversight of AI-related risks to financial stability.” The FSOC Conference featured noteworthy speeches by Secretary of the Treasury Janet Yellen (who chairs the Council), as well as Acting Comptroller of the Currency Michael Hsu.  And in a further sign of increased regulatory focus on AI in the financial industry, the Treasury Department also released a request for information on the Uses, Opportunities, and Risk of Artificial Intelligence (AI) in the Financial Services Sector (the AI RFI) while the conference was happening – its most recent, and most comprehensive, effort to understand how AI is being used in the financial industry.

In this blog post, we first summarize the key questions raised and topics addressed in the AI RFI.  We then summarize the key takeaways from FSOC’s conference on AI and discuss how these developments fit within the broader context of actions taken by the federal financial regulators in the AI space. Lastly, we lay out takeaways and the path ahead for financial institutions as they continue to navigate the rapid development of AI technology.

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