Chair frames AI as economic opportunity and national security risk at committee hearing

The chair of the U.S. Senate Banking Committee opened a hearing on artificial intelligence by framing the technology as both a major economic opportunity and a source of substantial risk.

“It is the ultimate question ... how do we get artificial intelligence right,” the chair said, telling witnesses the committee wants AI to “strengthen our economy, support small businesses and protect consumers.”

The chair argued that AI can deliver concrete benefits for everyday Americans, citing local examples: whether AI could help “a family in North Charleston save time and money on a mortgage,” help “a small business in Greenville become more competitive,” or “protect a senior in Columbia from fraud.” He said roughly 20% of small businesses in the United States already use AI to lower operating costs, and suggested broader deployment could reduce prices for consumers.

At the same time, the chair warned against heavy-handed regulation that might harm access to credit or stifle startups. “When we consider regulation, we must ask whether it will make it harder for a community bank to lend, a startup to grow, or a family to access credit,” he said, urging “thoughtful and well-informed solutions that protect Americans and mitigate major risks without hampering innovation or pushing it overseas.”

The hearing also placed AI in a national-security frame. The chair said the United States cannot let China or other adversaries gain a technological edge, pointing to China and Huawei as pursuing an aggressive global agenda. “We have to carefully craft export control policy that is clear and concise, allowing U.S. companies to compete in the global market while ensuring we are not handing our adversaries tools they can use against us,” he said.

The chair described the desired U.S. approach as building “the world’s tech stack, including powerful AI tools,” on trusted domestic networks and technology and emphasized workforce preparation: workers need training and tools so AI “strengthens American workers, not one that makes them feel replaceable.”

The hearing will hear expert testimony intended to inform the committee’s choices on balancing innovation, consumer protection and national security. The chair said the session builds on prior member roundtables and expressed that, if done correctly, AI could lower costs, expand opportunity and strengthen the financial system while keeping the United States secure.

The committee then called the first panel of witnesses to the witness table.