Witnesses from Google Cloud, Nasdaq, Zillow and Palo Alto Networks told the House Financial Services Committee AI already improves AML, fraud detection, market surveillance and cybersecurity, while urging explainability, human oversight, and information sharing to manage new risks.

Lawmakers at a House Financial Services hearing clashed over whether Congress should set a national AI standard that preempts state laws or preserve state-level safeguards; witnesses broadly backed controlled, time‑boxed sandboxes and harmonized federal standards while consumer advocates warned against blanket preemption.