"Since that data includes the redlining era, the AI will learn to make racist decisions." This is a crude assumption. AI researchers are well aware of these p

"Since that data includes the redlining era, the AI will learn to make racist decisions." This is a crude assumption. AI researchers are well aware of these potentialities, and you'd (or the government) would have to provide evidence that these systems are racist before banning them. The basic premise you're making is: "The world is unfair -> AI uses data from the real world -> the AI is racist". Insurance fiduciaries already use an incredible amount of 'training data' in their work, and we don't have hugely material problems there.