UK report stresses the importance of data stewardship to AI in banking

The AIPPF, established in 2020 by the Bank of England and the Financial Conduct Authority (FCA), was set up to facilitate dialogue between the private sector, public sector, and academia regarding AI. Data comes first: The report describes data as foundational for AI, attributing most of AI's recent growth to a surge in the availability of data to contribute to models. Data is more connected to AI's pros and cons than other aspects, and "many of the benefits and risks can be traced back to the data, rather than the AI systems or algorithms themselves." Data is also among "the defining features of AI," which can process massive quantities of data and find patterns from it. The report honed in on key areas for banks' data operations for AI, such as: Data quality: This covers accuracy, timeliness, transparency, and completeness. Banks' quality challenges include needing to update their controls and processes for AI, and handling complex data sources.