Although using AI for many important tasks, eight of the 23 biggest US, Canadian, and European banks do not have publicly responsible AI policies.
According to data by Evident, an independent intelligence platform working to hasten the effective implementation of artificial intelligence in business, banks in North America and Europe are not disclosing their strategies for responsible artificial intelligence (AI) development.
Silicon Valley Bank’s bankruptcy and Credit Suisse’s concerns highlighted banking industry transparency issues. Media attention on the industry highlights the need for banks to improve risk management.
According to Evident’s AI Index, eight of the 23 top banks in the US, Canada, and Europe do not yet provide any publicly responsible AI principles, despite the fact that banks now utilize AI for many crucial activities (such as authenticating customers and risk modeling).
In order to evaluate how banks perform in relation to the four key pillars of responsible artificial intelligence—creating leadership roles for AI, publishing ethical guidelines, collaborating with other organizations, and publishing unique research—Evident analyzed publicly available data points.
According to Evident’s co-founder and CEO Alexandra Mousavizadeh, AI may be the primary factor in improved risk management and decision-making across the global banking sector. Banks must, however, develop AI in a way that adheres to strict moral principles and limits unintended repercussions. Their investigation revealed a concerning lack of transparency on the current and potential uses of AI, which could undermine stakeholder confidence and impede development.
Many institutions are proactively addressing artificial intelligence problems and implementing internal programs to handle responsible in this highly regulated industry. Ethical AI reporting isn’t regulated, and many organizations hide their activities. The banks must take the initiative and begin disclosing their AI development at this pivotal time for the industry.
Artificial intelligence (AI) disclosure in Canada
According to the Evident Index, European banks are the least transparent when it comes to artificial intelligence reporting, while Canadian banks are the most.
Only three financial institutions—JPMorgan Chase & Co., the Royal Bank of Canada, and Toronto-Dominion Bank—have a clear strategy focus on transparency regarding ethical AI. Each of them demonstrated indications of developing distinct, accountable leadership roles for AI, disseminating ethical guidelines and reports, and cooperating with pertinent colleges and organizations.
Regional variations exist in AI talent hiring strategies as well. While European banks tend to lead responsible Artificial intelligence within their data ethics teams, North American institutions are more likely to recruit specialist responsible AI jobs.
Evident co-founder Annabel Ayles discussed the findings. RBC and TD Bank perform well because Canada promotes artificial intelligence ethics, according to Ayles. Top banks feel that strong research hubs help them overcome the technical obstacles of putting ethical norms into AI.
Banks are also exploring data ethics and responsible AI. Due to GDPR legislation, European banks may be missing a trick by not developing AI-specific roles and thinking holistically about AI risks.