In this podcast episode, Len and Dean discuss the challenges compliance officers face in keeping up with regulatory changes and guidance. They mention various regulations and topics that have been covered in previous episodes, such as CRA, Fair Lending, Redlining, BSA, AI, and more. They emphasize the importance of staying informed about regulatory changes and offer some techniques for compliance professionals to do so, including creating a regulatory calendar, attending conferences, reviewing internal processes, using compliance software, and building a team.
Dean then provides a specific example of recent guidance from the CFPB in June 2023 regarding the use of AI and chatbots by financial institutions. Although the CFPB hasn't released new regulations, they discuss the risks associated with chatbot usage from a UDAAP (Unfair, Deceptive, or Abusive Acts or Practices) perspective. Dean advises compliance officers to gain a comprehensive understanding of their institution's use of chatbots, identify and discuss risks associated with them, ensure adequate testing is performed, provide updated training on compliance risks, and consider updating the complaint intake form to include chatbot interactions.