**US Financial Services Committee Advocates Light AI Regulation**

The US Financial Services Committee (FSC) has responded to the Treasury's request for feedback on AI regulation, urging a light-touch approach. In a letter dated August 16, the committee's Republican leaders argue that a one-size-fits-all regulation could stifle competition among financial institutions. They recommend evaluating AI use on a case-by-case basis.

The FSC is optimistic about generative AI, like ChatGPT, enhancing financial services and promoting inclusion. They propose a "regulatory sandbox" to adapt existing rules to new AI challenges, rather than creating new regulations.

However, the committee also emphasizes consumer privacy, suggesting that users should be able to terminate data collection or request deletion. This could impact major AI firms like OpenAI and Google, whose models rely on user data. The feasibility of deleting data from pre-trained systems remains a contentious issue.