The bill introduced by Senators Mark Warner and John Kennedy seeks to establish strict penalties for businesses found using deepfakes or other AI tools illegally to manipulate financial markets or engage in securities fraud. Additionally, the legislation grants regulatory agencies the authority to examine and regulate the use of AI within the financial sector. It also mandates the Financial Stability Oversight Council to coordinate government efforts in studying AI's risks and developing recommendations for rules or regulations. The bill is a response to the recent warnings from the Financial Stability Oversight Council and the Bank of England about the potential risks AI poses to the financial system. Senators Warner and Kennedy stressed the need for swift action to address AI's vulnerabilities in the financial markets to protect investments and retirement savings.