How Can Financial Institutions Prepare for AI Risks?

People walk around in the city of London. Financial institutions are increasingly adopting AI as technological barriers have fallen and its benefits and potential risks have become clearer. Artificial intelligence (AI) technologies hold big promise for the financial services industry, but they also bring risks that must be addressed with the right governance approaches, according to a white paper by a group of academics and executives from the financial services and technology industries, published by Wharton AI for Business. The white paper details the opportunities and challenges of implementing AI strategies by financial firms and how they could identify, categorize and mitigate potential risks by designing appropriate governance frameworks. "Professionals from across the industry and academia are bullish on the potential benefits of AI when its governance and risks are managed responsibly," said Yogesh Mudgal, AIRS founder and lead author of the white paper.