Many of world’s biggest banks lack transparent policies for responsible AI

It is unclear whether many of the world’s largest banks have adopted and are using ethical artificial intelligence development principles

Many of the world’s biggest banks lack transparency in how they are developing the artificial intelligence (AI) that could be used in future decision-making and risk management.

A study of the 23 largest banks in Europe, the US and Canada found eight that have not publicly reported their responsible AI principles.

Benchmarking company Evident assessed banks in four areas of responsible AI, using public data to create its AI Index. It looked at the banks’ creation of AI leadership roles, publication of ethical principles, collaborations with other organisations and publication of original research.

Evident CEO Alexandra Mousavizadeh said AI could provide better risk management and decision-making across the global banking sector. But he added that it was vital for banks to develop AI in a way that meets high ethical standards and minimises unforeseen consequences.

“Our research found a worrying lack of transparency around how AI is already used – and how it may be used in the future – which could damage stakeholder trust and stifle progress,” said Mousavizadeh. “In this highly regulated sector, the reality is that many institutions are taking proactive steps to address AI concerns and developing internal programmes to address responsible AI.”

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