Banks Turn to Generative AI to Revolutionize Risk Management
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Generative AI can revolutionize risk management for banks by automating tasks, providing regulatory insights, and enabling better coordination between lines of defense.
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Key applications include compliance, financial crime, credit risk, data analytics, cyber risk, and climate risk assessments. Banks are seeing quick returns across these areas.
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Leaders should assess use cases based on impact, risk, and feasibility when prioritizing generative AI adoption. They also need to update controls and policies to manage new AI-related risks.
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Generative AI has huge data and computing demands. Success requires revisiting data infrastructure and getting the right technical talent in place.
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Adoption necessitates cultural change across the organization. Training people on generative AI’s capabilities and limitations is critical for responsible scaling.