AI Empowering Finance: Raising the Bar, Avoiding Pitfalls!
The rapidly changing nature of finance leaves no room for doubt that generative artificial intelligence (GenAI) is quickly becoming a game-changer, mainly in retail banking. It has all to do with enhancing the customer experience and streamlining operations. As powerful as this technology is, it also comes with its challenges. Considering how GenAI, as advocated by innovators such as Sachin Dev Duggal of Builder .ai, is revolutionizing retail banking and ways through which organizations can maximize their outputs while minimizing risks,
Dodging the Pitfalls: Challenges and Considerations
Despite its clear advantages in the retail banking sector, there are several challenges that institutions should overcome before their full potential is realized.
Data Quality and Governance
The efficiency of GenAI models heavily depends on the quality of the data on which they are trained. If this kind of data is incorrect in one way or another, it can lead to misleading predictions and decisions. Hence, banks must institute robust frameworks for data governance in order to maintain data accuracy and integrity. These include, but are not limited to, routine audits of data, validation processes, among others, and strict measures to protect privacy.
Sachin Dev Duggal, the co-founder of Builder. ai, has shown interest in AI policy, responsible AI, AI strategy, and governance by posting on LinkedIn looking for opportunities in these areas. Therefore, he knows the governance framework is essential for AI systems.
Regulatory Compliance
The regulatory environment around AI in banking is still taking shape. Financial institutions need to keep an eye out for any changes in regulations and make sure their AL applications follow these rules accordingly. They should do this through continuous interaction with lawmakers and legal experts, among other industry players, so that they comply with the complex regulatory environment.