Rohit Chopra, the Indian American director of the Consumer Financial Protection Bureau (CFPB), has expressed concerns about the potential concentration of power in the hands of a few entities due to advancements in artificial intelligence (AI). He emphasized the transformative impact of massive consumer data aggregation on the economy and its consequences for Americans, particularly highlighting the “winner-take-all” aspect of AI.
Chopra, speaking at the Axios AI+ Summit, voiced worries about the unprecedented simulation of human interaction by AI and its potential for fraud, crime, and abuse, especially in financial services like customer service and lending. Despite these concerns, he acknowledged the existence of long-standing laws that could address such issues, emphasizing the importance of utilizing and, if necessary, updating these legal frameworks.
Expressing unease over the concentration of gains in the hands of a select few individuals, Chopra raised questions about control and distribution in the evolving landscape of AI. He cautioned against a market structure that rapidly funnels power to only a few players and expressed concerns about antitrust issues related to data pools as valuable assets.
Chopra acknowledged the complexity of regulating AI, stating that while existing antitrust laws could be applied, the challenge lies in how regulators identify and address these issues effectively. Despite his reservations, he did not advocate for the creation of a new agency solely for AI regulation, highlighting the difficulties in consolidating the vast array of AI-related matters under a single regulatory body.
As the director of CFPB, Chopra stressed the need to consider the agency’s formation in response to a lack of consumer protection accountability. He cautioned against adding new agencies without clear objectives and underscored the difficulty of encompassing all AI-related aspects, from national security to mergers and acquisitions, within a single regulatory framework.
Chopra, appointed by President Joe Biden in 2021, brings a wealth of experience to his role, having previously served at CFPB and the Federal Trade Commission. With a background in management consultancy and degrees from Harvard University and the Wharton School, Chopra navigates the intricate landscape of AI regulation with a nuanced perspective.
