Business and financial groups warn that proposed AI rules' vague 'commercially reasonable' human‑review standard may limit transparency
The proposed AI rules could weaken oversight of automated decisions by allowing limited human review under an ambiguous standard.
ADTP Regulatory Watch· October 27, 2026
ImpactLow 39
Type📋 Proposed Regulation
Statusproposednot law
JurisdictionUS
What happened
The draft AI regulation mandates human review only when it is ‘commercially reasonable,’ a vague standard that companies say could trigger frequent reassessments and consumer groups fear it will let businesses avoid reviews. EPIC attorney Kara Williams says the use of ‘commercially reasonable’ and ‘technically feasible’ will reduce transparency and the number of human reviews.
Why it matters for trust and compliance
Its status is proposed. It is not law yet. Track it, but do not treat it as an obligation.
The proposed AI rules could weaken oversight of automated decisions by allowing limited human review under an ambiguous standard.
Who is affected
financial servicestechnologycontrollerdeveloperdeployerElectronic Privacy Information Center (EPIC)
Recommended actions
Check that privacy notices describe the practices this addresses.
Inventory AI or automated decision systems in scope and their assessments.
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