DIFS Guidance on AI Use in Financial Services

MI DIFS Press Releases

Published January 14th, 2026

Detected March 18th, 2026

Summary

The Michigan Department of Insurance and Financial Services (DIFS) has issued a bulletin to guide financial services providers on the use of Artificial Intelligence (AI). The guidance aims to ensure AI applications comply with existing laws and regulations, with a focus on consumer protection, fairness, and transparency.

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What changed

The Michigan Department of Insurance and Financial Services (DIFS) has issued a new bulletin (Bulletin 2026-03-BT-CF-CU) providing guidance to financial services providers regarding the use of Artificial Intelligence (AI). The bulletin clarifies how existing state and federal laws and regulations apply to AI systems used in the financial services industry and outlines DIFS' expectations for the development and deployment of such technologies. Key concerns addressed include potential risks such as inaccuracies, unfair discrimination, data vulnerability, and lack of transparency in AI-driven decision-making processes.

Financial services providers regulated by DIFS, including banks, credit unions, and mortgage companies, are expected to ensure their AI systems comply with all applicable laws and regulations, prioritizing consumer protection. While the bulletin does not introduce new laws, it emphasizes the need for providers to consider potential risks and ensure fairness, accuracy, and transparency in AI applications that impact consumers. Compliance with existing regulations is paramount, and DIFS will monitor adherence to these expectations.

What to do next

Review DIFS Bulletin 2026-03-BT-CF-CU for specific guidance on AI use.
Assess current AI systems for compliance with existing Michigan and federal financial services laws and regulations.
Ensure AI implementation addresses potential risks related to accuracy, fairness, data security, and transparency for consumers.

Source document (simplified)

DIFS Issues Bulletin to Address Use of Artificial Intelligence in the Financial Services Industry

January 14, 2026

Media Contact: DIFS-press@michigan.gov
Consumer Hotline: 877-999-6442, Michigan.gov/DIFScomplaints

FOR IMMEDIATE RELEASE: January 14, 2026

(LANSING, MICH) The Michigan Department of Insurance and Financial Services (DIFS) has issued a new bulletin to provide guidance to financial services providers regulated by the Department to ensure that decisions or actions made or supported by Artificial Intelligence (AI) that may impact consumers comply with all applicable laws and regulations.

“Artificial Intelligence is changing the financial services industry, and financial services entities should ensure that the use of any AI systems complies with federal and state laws and regulations while prioritizing consumer protection,” said DIFS Director Anita Fox. “This new bulletin outlines DIFS’ expectations and identifies issues financial services providers should consider when using AI systems.”

AI technology has led to the automation and simplification of many financial products and services upon which consumers depend. However, this technology can also present unique risks to consumers, including inaccuracies, unfair discrimination, data vulnerability, and lack of transparency in the internal decision-making process. This bulletin clarifies how existing laws and regulations apply to AI and outlines the Department’s expectations for how the financial services industry develops and uses this technology.

DIFS is the state consumer protection agency that regulates the insurance and financial services industries, including banks, credit unions, mortgage companies, and other consumer financial services entities. For more information about financial services in Michigan, visit Michigan.gov/DIFS. Consumers who have questions or disputes that cannot be directly resolved with financial services entities can contact DIFS Monday through Friday 8 a.m. to 5 p.m. at 877-999-6442 or file a complaint online at Michigan.gov/DIFScomplaints.

The mission of the Michigan Department of Insurance and Financial Services is to ensure access to safe and secure insurance and financial services fundamental for the opportunity, security, and success of Michigan residents, while fostering economic growth and sustainability in both industries. In addition, the Department provides consumer protection, outreach, and financial literacy and education services to Michigan residents. For more information, visit Michigan.gov/DIFS or follow the Department on Facebook, X, or LinkedIn.

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