by Fintech News Singapore
April 17, 2024
Generative artificial intelligence (AI), also known as gen AI, is expected to significantly impact risk management over the next five years, allowing financial institutions to automate tasks, accelerate processes and improve efficiencies.
But in order to leverage the benefits of gen AI, risk and compliance functions must establish clear guidelines and frameworks that not only address inbound risks from gen AI but which also ensure the responsible usage of gen AI, a new paper by McKinsey says.
The report, discusses the potential impact of gen AI on risk management within financial institutions, exploring the benefits of the technology in enhancing processes and efficiencies, as well as delving into the important considerations associated with adopting gen AI.
According to the paper, gen AI has the potential to transform the way banks manage risks over the next three to five years by allowing functions to move away from routine tasks towards partnering with business…
