What does Preamble of S 2528 do?

This bill, formally titled 'To establish AI Innovation Labs that permit certain persons to experiment with artificial intelligence without expectation of enforcement actions,' aims to establish AI Innovation Labs. The labs would allow certain individuals to experiment with artificial intelligence. These experiments would be conducted without the expectation of enforcement actions.

What does SHORT TITLE. of S 2528 do?

This bill is formally titled the Unleashing AI Innovation in Financial Services Act.

What does DEFINITIONS. of S 2528 do?

This section defines key terms used throughout the legislation. An 'AI test project' is a financial product or service under the jurisdiction of a financial regulatory agency that uses artificial intelligence and may be subject to federal regulation. The 'appropriate financial regulatory agency' is determined based on the type of institution, referencing specific sections of the Federal Deposit Insurance Act, Securities Exchange Act of 1934, and Consumer Financial Protection Act of 2010. ’Artificial intelligence’ and ‘AI’ are defined by reference to section 5002 of the National Artificial Intelligence Initiative Act of 2020. ’Financial product or service’ includes activities that are financial in nature, products or services provided by entities regulated by the SEC, and the offer or sale of securities, but excludes the business of insurance. ’Financial regulatory agency’ includes agencies such as the Federal Reserve, FDIC, OCC, SEC, CFPB, NCUA, and FHFA. A 'regulated entity' is an entity regulated by any financial regulatory agency.

What does USE OF ARTIFICIAL INTELLIGENCE BY REGULATED FINANCIAL ENTITIES. of S 2528 do?

This section establishes AI Innovation Labs within financial regulatory agencies. Regulated entities can submit applications to these labs to experiment with AI test projects under alternative compliance strategies. Applications must include a description of the AI project, an alternative compliance strategy, and an explanation of how the project serves the public interest and does not pose systemic or national security risks. Agencies have 120 days to review applications, with a possible 120-day extension. If an application is denied, the regulated entity can resubmit up to two amended applications. Financial regulatory agencies must promulgate regulations within 180 days of the Act's enactment regarding AI test project modifications, compliance consequences, and confidentiality procedures. Agencies must submit annual reports to Congress on the outcomes of AI test projects, excluding confidential business information.

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Unleashing AI Innovation in Financial Services Act — S. 2528

Last updated: 7/29/2025 · Introduced: 7/29/2025

Author: Mike Rounds (R-SD)

TL;DR (AI)

This bill establishes AI Innovation Labs within financial regulatory agencies to allow regulated entities to experiment with artificial intelligence in financial products and services under alternative compliance strategies.
Regulated entities can apply to these labs, detailing their AI projects, alternative compliance approaches, and how they benefit the public while mitigating risks.
Financial regulatory agencies are required to create regulations regarding AI test project modifications, compliance, and confidentiality, and to report annually on the outcomes of these projects to Congress.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 2 more.

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