The report, released Wednesday by the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection (OCCIP), identified “significant opportunities and challenges that AI presents to the security and resiliency of the financial services sector. The report outlines a series of next steps to address immediate AI-related operational risk, cybersecurity, and fraud challenges,” according to a press release.
The report was written in response to President Joe Biden’s executive order on the trustworthy development and use of AI, issued in October. The OCCIP conducted in-depth interviews with 42 financial services and technology-related companies, ranging from global systemically important financial institutions to local banks and credit unions.
The report said the capability gap for in-house AI tool use between large and small financial institutions is driven by a lack of internal data resources at small institutions, which prevents them from adequately training AI models.
“Additionally, financial institutions that have already migrated to the cloud may have an advantage when it comes to leveraging AI systems in a safe and secure manner,” the agency’s release said.
The gap…
