1. Short title This Act may be cited as the Financial Artificial Intelligence Risk Reduction Act or the FAIRR Act . 2. Definitions In this Act, the term artificial intelligence has the meaning given the term in section 5002 of the National Artificial Intelligence Initiative Act of 2020 ( 15 U.S.C. 9401 ). 3. Special provisions regarding artificial intelligence in the financial sector (a) In general Subtitle A of the Financial Stability Act of 2010 ( 12 U.S.C. 5321 et seq. ) is amended by adding at the end the following: 126. Special provisions regarding artificial intelligence in the financial sector (a) Coordination, report, and recommendations The Council shall coordinate with member agencies with regard to potential risks to the stability of the financial system posed by artificial intelligence, including— (1) direct the Office of Financial Research, as appropriate, to conduct research into the uses of artificial intelligence by financial institutions and entities providing services to or performing functions on behalf of financial institutions; (2) identify threats to the stability of the financial system posed by the use of artificial intelligence tools and technologies, such as— (A) the generation and use of false representations of events or the likeness, speech, or actions of persons by malign actors to manipulate financial markets, institutions, or instruments, or to cause disruption in financial markets and; (B) any other acts or practices associated with the use or assistance of artificial intelligence tools or technologies that threaten the stability of the financial system