Financial services firms are emphasizing active human oversight in model training, interpretation, and sensitive decision-making as they integrate generative AI into their operations, according to a report from UK Finance. AI is being deployed to enhance efficiency, improve customer engagement, and drive innovation while ensuring risks are carefully managed.
Key areas where AI is being implemented include customer engagement and personalized marketing, software development and data management, intelligent workflow automation, fraud and financial crime prevention, as well as legal, contractual, and compliance text analysis. While firms are actively leveraging AI for innovation, they are also exercising caution by maintaining regulatory compliance, ensuring high-quality data, and promoting transparency in AI applications.
Risk management remains a priority, with banks paying close attention to the reliability of AI-generated outputs, data privacy and security, and potential over-reliance on third-party AI vendors. These considerations are crucial in maintaining trust and mitigating unintended consequences from automated decision-making.
Jana Mackintosh, managing director of payments and innovation at UK Finance, highlights the careful approach being taken by the financial sector. She states: “Generative AI has real potential, but also brings potential risks that will need to be managed. The financial services sector is currently focused on areas that involve active human oversight and are taking a careful approach. The good news is the sector has a strong track record of innovating responsibly with new technologies, positioning it well to harness the potential of generative AI.”