*This article was first published in Bank Director. Read the full version here.

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Banks are on the cusp of a transformation driven by advancements in predictive AI, generative AI and machine learning (ML). Using these technologies to enhance current operations and bolster fraud protection, banks have the potential to identify efficiencies and offer superior digital banking experiences.

This is particularly true in areas such as enhanced back-office operations, customer acquisition and growth, loan operations, fraud detection and risk management. The challenge involves balancing adopting innovative AI solutions against ethical, compliance and regulatory challenges.

Opportunities and Risks
Generative AI is creating new opportunities to improve call center intelligence, fraud detection and prevention, relationship building, analytics and regulatory compliance. Every day it seems as though there is a new headline about a financial institution deploying generative AI.

While generative AI’s impact promises to be transformational, like any new technology, it presents unique risks for banks that include:

• Model fairness and bias risk
• Intellectual property infringement
• Data privacy concerns
• Security threats
• Ethical and regulatory compliance
• Auditing and transparency

Getting Your Bank Ready for Generative AI — Continue reading the article.

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