Introduction: The Fragmented AI Regulatory Landscape # The United States has no single AI regulatory agency. Instead, AI oversight is fragmented across dozens of federal agencies, each applying its existing statutory authority to AI systems within its jurisdiction. The Federal Trade Commission addresses AI in consumer protection and competition. The Food and Drug Administration regulates AI medical devices. The Equal Employment Opportunity Commission enforces civil rights laws against discriminatory AI. The Consumer Financial Protection Bureau oversees AI in financial services.
Financial services face a unique standard of care challenge: fiduciary duties that predate AI must now be applied to algorithmic decision-making. What does it mean to act in a client’s best interest when an AI makes the decision? How do fair lending laws apply when algorithms, not humans, deny loans?
When AI Becomes the Debt Collector # The debt collection industry, historically notorious for harassment and intimidation, is rapidly adopting artificial intelligence. AI chatbots can contact millions of debtors in days. Voice cloning technology creates synthetic agents indistinguishable from humans. Algorithmic systems decide who gets sued, when to call, and how aggressively to pursue payment.