The U.S Department of Treasury recently sought comments and feedback on the uses of Artificial Intelligence (AI) in the financial services sector.
Through this request for information (RFI), the US Treasury sought to increase its understanding of how AI is being used within the financial services sector, the opportunities and risks presented by developments and applications of AI. This includes potential obstacles for facilitating responsible use of AI within financial institutions, the effect on impacted entities through use of AI by financial institutions, and recommendations for enhancements to legislative, regulatory, and supervisory frameworks applicable to AI in financial services.
Napier AI commented on the following topics and urged the need for explainable, auditable and compliance first AI, especially in the high-stake sector of financial crime compliance.
- The risks and barriers to small financial institutions in implementing AI for financial crime compliance and how to overcome them
- Methodologies and frameworks for explainable AI and effective data confidentiality
- The benefits and risks of using open-source code and non-traditional forms of data such as synthetic data
- Addressing anti-money laundering and counter-terrorist financing (AML/ CFT) risks using AI effectively
- Implementation challenges and benefits of using third-party providers versus in-house AI systems, and more
Read the full consultation response here
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