Banks face fairness challenges as they commit to AI technology

Three-quarters of banking executives think artificial intelligence (AI) will determine whether they succeed or fail, but they face major governance challenges, including ensuring decisions made by AI are fair and ethical. A report from the Economist Intelligence Unit (EIU) said data bias that leads to discrimination against individuals or groups was one of the most prominent risks for banks using the technology. AI is currently high on the banking agenda and the disruption caused by Covid-19 has "intensified" its adoption in the sector, according to the EIU. Banks are using AI to create more personalised banking services for customers, to automate back-office processes and to keep pace with developments at the digital challenger banks pioneering AI in the sector. But banks will need to ensure ethical, fair and well-documented AI-based decisions, said the EIU's Overseeing AI: Governing artificial intelligence in banking report.