This report from the U.S. Department of the Treasury discusses the widespread use of Artificial Intelligence (AI) in the financial sector, including both established machine learning techniques and newer Generative AI. It outlines the various applications and potential benefits of AI for financial firms and consumers, while also addressing the significant risks such as data privacy concerns, bias, lack of transparency, concentration of power among AI providers, and potential for illicit use. The report also summarizes recommendations from stakeholders for policymakers and the industry regarding regulatory frameworks, consumer protection, and collaboration to manage these opportunities and challenges.

https://home.treasury.gov/system/files/136/Artificial-Intelligence-in-Financial-Services.pdf