Artificial intelligence

Unleashing AI Innovation in Financial Services Act

This bill allows regulated financial entities to test artificial intelligence (AI) projects under waived or modified regulations upon the approval of an application by the appropriate federal financial regulatory agency. These agencies must establish AI innovation labs to enable such projects.

Under the bill, regulated entities may engage in AI test projects associated with financial products, services, or activities. Regulated entities must apply to the appropriate agency with a description and proposed duration of the AI test project, propose an alternative compliance strategy, and explain how the AI test project serves the public interest and does not present certain risks.

The alternative compliance strategy must include several elements, such as (1) identifying a regulation issued by an agency that the regulated entity requests to be waived or modified and (2) proposing an alternative method of compliance with the regulation's underlying statute. Upon approval, the agency may only enforce such a regulation according to the agreement.

The bill also provides for agency review of such applications, establishes procedures for entities that are subject to regulation by multiple agencies, and allows agencies to file for injunctive relief if an AI test project presents certain risks or dangers.

AI Tax Integrity Act of 2026

This bill requires the Internal Revenue Service to establish a pilot program to use artificial intelligence to identify inaccurate federal tax returns. Upon completion of the pilot program, the Government Accountability Office must submit a report to Congress describing the

• aggregate amount of improper tax refunds or reduced tax liability attributable to fraud detected by the pilot program,

• aggregate amount recovered as a result of the pilot program, and

• accuracy of the artificial intelligence tools used in the pilot program in identifying fraudulent federal tax returns.

K-12 AI Literacy and Readiness Act of 2026

This bill authorizes states and local educational agencies (LEAs) to use Student Support and Academic Enrichment Grants for programs and activities that support instruction on the use of artificial intelligence (AI). For example, LEAs may use these grants to provide teachers, school librarians, administrators, and others with the knowledge and skills to use (and teach the use of) AI safely, effectively, and responsibly, including through professional development.