World’s largest banks failed to report on AI activity
Research released today has found eight of the worlds largest banks across the US and Europe are insufficiently reporting on their progress of Artificial Intelligence AI within their business.
Published today, research from Evident, an independent intelligence platform that seeks to accelerate the successful adoption of AI in business has outlined that banks in North America and Europe are failing to report on their AI progress.
AI – the simulation of human intelligence processes by machines, especially computer systems – is often introduced into banks to help enhance customer experiences by providing around the clock support and brings the power of advanced data analytics to combat fraudulent transactions.
However, with banks currently dominating news headlines due to the recent Credit Suisse case and the collapse of Silicon Valley Bank in America, the need for AI within the sector is higher than ever.
The organisation discovered that whilst AI is already in use by banks for many critical processes, from authenticating customers to risk modelling, eight of the 23 largest banks in the US, Canada and Europe currently provide no public AI principles.
To gather research, experts from Evident analysed millions of publicly available data points to assess how banks report against four main areas of responsible AI, which are: creation of AI leadership roles, publication of ethical principles, collaborations with other organisations, and publication of original research.
Alexandra Mousavizadeh, Co-Founder of Evident and CEO, said: ‘AI could be the key driver of better risk management and decision-making across the global banking sector.
‘However, it is vital that banks 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.
‘The problem is that there is no standard for responsible AI reporting, and many banks withhold the details of their efforts. At this critical time for the sector, the banks need to show leadership and start reporting publicly on their AI progress.’
Experts found that Canadian banks are the most transparent on responsible AI reporting, with European banks the least.
Annabel Ayles, the second Co-Found of Evident, added: ‘It’s perhaps unsurprising that two Canadian banks, RBC and TD Bank, perform well as the country itself facilitates a lively AI ethics conversation. The top-ranking banks also tend to have strong research hubs, which we believe helps them address the technical challenges of implementing ethical standards into AI.
‘It’s similarly clear that banks are trying to work out the links between responsible AI and data ethics. European banks which view responsible AI through a lens of data ethics, potentially due to the dominance of GDPR legislation, are perhaps missing a trick by not creating AI-specific roles and thinking holistically about the broader risks posed by AI.’
In addition to the news uncovered by Evident, the Bank of England has also hit national headlines recently as they have made the decision to increase interest rates for the 11th time in 18 months.
Image: Evident and Stephen Phillips