Kudos to Client and Dynamo AI Co-Founder and President Dr. Christian Lau on providing insights on artificial intelligence to Congress September 18 when he testified before the U.S. House Committee on Financial Services in a hearing titled “Unlocking the Next Generation of AI in the U.S. Financial System for Consumers, Businesses, and Competitiveness.” The hearing focused on how financial services regulators and firms are using AI in areas such as lending, fraud detection, and compliance, considering both the benefits and potential risks associated with AI adoption.

Dr. Lau said AI can greatly improve financial services by boosting efficiency, fraud detection, and customer service. Still, most projects fail because banks can’t manage risks such as AI hallucinations, misuse, data leaks, poor explainability, and overreliance on vendors. He urged stronger governance across legal, risk, and tech teams, better guardrails and monitoring, safe “sandboxes” for testing, and updated regulations that balance protection with innovation while ensuring small firms can compete.

Numerous Procopio attorneys meet Dynamo AI’s legal needs, including corporate matters led by Partner James Kramer, employment law matters led by Partner Marina Gruber, real estate matters led by Partner Sara Neva, privacy matters led by Partner Elaine Harwell, and IP licensing strategy and litigation matters led by Partners Xiaofan “Frank” Yang and Mindy Morton.

It was wise of Congress to invite Dr. Lau to testify. As he said in his opening statement, “Since founding Dynamo AI, we’ve had the opportunity to work with some of the largest global financial institutions, the most cutting edge fintech companies, as well as regional banks across America to help them navigate compliance and governance challenges posed by AI. Dynamo AI itself is backed by over 40 of the top 100 U.S. financial institutions and a consortium of community banks who often lean on Dynamo AI to navigate their governance of AI and securely deliver AI applications into production.”

Noting he co-founded Dynamo AI with CEO Vaikkunth Mugunthan in 2021 while a PhD student at Massachusetts Institute of Technology, Dr. Lau said the company’s mission “has always been to help enterprises navigate complex regulatory environments, particularly where compliance requirements pose open technology challenges that institutions struggle to solve.” Too often companies are “left paralyzed,” not sure if compliance is even technically possible.

For a deeper dive on Dr. Lau’s insights, read his opening statement and watch a recording of the hearing.