Sarah Hutchins and Alison Lamb wrote an article in the ABA Banking Journal about the benefits and risks for financial institutions when it comes to using artificial intelligence (AI). 

"Machine-learning models and other tools can process and evaluate data at speeds much quicker than their human counterparts," Sarah and Alison wrote. "Automation through the use of AI means that a tedious process, such as bank account openings or risk assessments, can be done more efficiently."

"While there are clear benefits, AI tools also bring risk," they continued. "AI is increasingly coming under the watchful eye of state and federal regulators. Data privacy laws are being enacted across the country as lawmakers seek to protect sensitive personal information both from improper use and also from unannounced use in profiling. The White House’s executive order on AI and the European Union’s adoption of a comprehensive AI law are the latest examples of AI-focused regulation. One focus of these regulations is to guard against bias in AI output."

"With this evolving patchwork of laws around data privacy and an emerging technology, financial institutions should be mindful about mitigating their risk," Sarah and Alison wrote. 

Click here to read the full article: Artificial Intelligence for Banks: Learning Benefits, Mitigating Risk

The ABA Banking Journal is the flagship publication of the American Bankers Association and provides insights on critical business and policy challenges and trends for banking leaders.