# Plain Language Summary: Responsible AI Disclosure Act of 2024

This bill asks federal financial regulators to study how banks and financial companies are using artificial intelligence systems from outside vendors, then figure out what information should be disclosed about those AI systems. Right now, there's no standard way for financial institutions to describe the AI tools they're using—what data trained them, where that data came from, or how they actually work. This creates confusion and potential risks because regulators and the public don't really know what's powering important financial decisions.

The bill requires six major financial agencies (the Federal Reserve, the SEC, the FDIC, the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, and the National Credit Union Administration) to work together and produce a report within six months. That report needs to examine what data is being used to train these AI models, how much of that data is real versus artificially created, where the data comes from, and how the AI systems actually function. The agencies also need to look at whether these AI systems are complying with existing laws about discrimination, consumer protection, and investor protection.

After the report is finished, the financial regulators can use their existing authority to require banks and AI vendors to either report detailed information about their AI systems to the regulators or disclose it publicly. This could mean that when a bank uses an AI system to decide whether to approve your loan or recommend investments, there would be standardized information available about how that system was built and trained. The bill essentially creates a framework to bring transparency to AI use in the financial sector, though it stops short of creating brand new laws—it just asks regulators to study the issue and then use tools they already have to address any problems they find.