Washington, banks & AI: Here’s how to get ready for more scrutiny
Don't wait for a mandate. Get your bank started on developing a policy for use and risk management of all types of artificial intelligence. Tailor it to what your bank is already doing and keep it up to date as new types of AI get added to your mix.
The White House
Across the financial services business, AI-powered solutions have taken center stage as the future of both internal and client-facing systems. But cutting-edge products and solutions often draw regulatory scrutiny. Headlines regarding new guidance or enforcement priorities seem almost as common as the headlines purporting revolutionary innovations.
Institutions are left wondering how to best prepare themselves for reaping the rewards of technological advancement, while still protecting themselves, their customers and the financial ecosystem. Not much has been heard publicly from the traditional banking regulators, but institutions have a good deal out of Washington that they can review to begin gearing up for the challenges.
Opening rounds on AI from Washington
President Biden’s October 2023 “Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence” is just one example of how regulators and legislators are keeping AI at the forefront of their efforts.
The executive order outlines a plan to safely promote innovation. It requires developers to disclose safety testing results, government agencies to set standards and assess risk, and Congress to pass legislation to protect Americans from the threats of AI, among other directives. On April 1, the U.S., via the Commerce Department, and the U.K. signed a memorandum of understanding to jointly develop tests of the safety of advanced artificial intelligence models.
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