Banking AI - Safety, Security, and Ethical Use

Article

Arvest Bank’s Model Risk Director highlights the dual focus of leveraging AI's innovation potential and adhering to stringent safety, security, and ethical standards.

Aug 23, 2024

Chris Smigielski, Model Risk Director, Arvest Bank

Banking AI - Safety, Security, and Ethical Use

Robust governance frameworks are essential for integrating AI in banking, as they help banks harness AI’s potential while ensuring compliance with rigorous regulatory standards.
Transparency and explainability in AI models are crucial, as they ensure that AI decisions are clear and justifiable, which is vital in the heavily regulated banking sector for maintaining accountability and fairness.
Rigorous bias mitigation processes are necessary to prevent discriminatory practices, and banks must employ extensive testing and validation to identify and address biases in AI models.
Balancing innovation with regulation is a key challenge for banks, which must navigate the delicate balance between leveraging AI’s transformative capabilities and adhering to regulatory requirements by adopting stringent governance and ethical frameworks.