Michigan’s financial services regulator reminds industry of best AI compliance practices | Orrick, Herrington & Sutcliffe LLP
https://www.jdsupra.com/legalnews/michigan-s-financial-services-regulator-1199319/
Publish Date: 2026-01-26 14:31:00
Source Domain: www.jdsupra.com
- On January 14, Michigan’s Department of Insurance and Financial Services (DIFS) issued a bulletin emphasizing the requirement for financial service providers to comply with laws and regulations when using advanced analytical technologies, including AI systems.
- The bulletin outlined DIFS’ expectations for governing the development, acquisition, and deployment of AI technologies, advising providers on potential information requests during investigations.
- DIFS referenced a Treasury report from December 2024 (“Artificial Intelligence in Financial Services”) as a useful source of guidance for financial service providers.
- The bulletin highlighted inherent risks associated with AI, including inaccuracy, unfair discrimination, data vulnerability, lack of transparency, and incapacity to map decision processes.
- To mitigate these risks, DIFS recommended that financial service providers adhere to risk and management standards and employ verification methods to identify errors and biases in AI models and systems.
- All financial service providers are mandated to develop, implement, and maintain a written AI systems program for responsible AI use; those not using AI systems should establish employee acceptable use policies.
