AI Report Digital - Flipbook - Page 7
“Generative AI has really changed the game around AI in
terms of accessibility. You don’t need to be a [big] Wall
Street bank anymore to get this capability into the hands
of your company.”
Daragh Morrissey, Microsoft Worldwide Financial Services
Stability Oversight Council flagged that generative AI could
“We call it an iPhone moment. I think generative AI and
pose risks for banks in areas like data security and consum-
traditional AI are going to be game changers for the next
er protection. And there’s a concern that AI-powered models
few years to come, at least. You can really use that to your
could produce discriminatory or biased results.
advantage to not only get more efficient but to create the
big bank type of experience,” says Ashvin Parmar, who heads
To learn more about regulatory considerations,
go to page 14.
the financial services generative AI center of excellence at
the technology consultancy Capgemini. “You can engage and
service clients in a more meaningful and comprehensive way.
You can improve your risk management practices and then
But no one disputes that AI’s capabilities — generative or
free up investment for other things, which will allow you to
not — are powerful enough that a bank or credit union could
grow. So this is not something that you should ignore. This is
experience real productivity and efficiency gains from its use.
a pivotal moment.”
AI can help banks detect and prevent fraud, assess credit
risk, analyze investments, generate marketing materials,
target potential customers and assist with compliance. Its
accessibility and abilities are impressive enough to intrigue
community bank and credit union boards and executives who
may have been skeptical about AI’s capabilities in the past
or daunted by the work to integrate the technology. They may
Many banks and credit unions in the United States are at
the start of their AI initiatives, if they’ve started at all. What
they don’t have the option to do is nothing, Morrissey at
Microsoft says. Big banks are years into their AI initiatives;
financial institutions that don’t start soon will fall further
behind in their capabilities, productivity and efficiency.
be moving off the sideline of observation toward implemen-
Organizations big and small are assembling teams to lead
tation. At the same time, institutions are considering how to
their projects. They’re drafting plans. Eventually, they’ll
manage and oversee the associated risks.
begin constructing a framework of AI-powered models and
As AI technology continues to develop, financial leaders are
left to figure out how to start or move forward in their AI
journey. But infusing AI capabilities across an institution will
be no easy task. It will require support from management,
coordination across the organization, quality data management, vendor due diligence, enhanced risk management and
strengthened oversight. In short, it will require the institution
systems, populated by their data. These initiatives will progress and iterate — there will be more projects, more applications, more data. The use cases will require strengthened
and heightened risk governance, which should become more
robust as AI is used in more places across the institution.
It’s not clear what a bank or credit union shaped by AI
looks like yet. But it’s getting built today.
to build a framework, structure and methodology to execute
and oversee these initiatives, given the size of its potential
Kiah Lau Haslett is the banking & fintech editor for
risks and rewards.
Bank Director.
ARTIFICIAL INTELLIGENCE: A REAL-WORLD APPROACH | 5
