Posted 12/14/2023, 10:12:00 PM
AI Risks Flagged for Financial Sector
- Regulators warn AI poses risks to financial system, including cybersecurity, compliance, and privacy issues
- Concerns raised about "black box" AI models that lack explainability and transparency
- Worry that flawed or biased AI could harm consumers and lead to fair lending violations
- Generative AI like ChatGPT also poses specific risks around data security and "hallucinations"
- Regulators call for oversight and governance of AI adoption to manage emerging vulnerabilities