Financial services firms are putting an emphasis on active human oversight for model training, interpretation and sensitive decision-making as they begin the roll out of generative AI across their businesses, according to a report from UK Finance.
The study finds that AI is being used by financial services firms to enhance operations, improve customer engagement, and drive innovation, while carefully managing the associated risks.
Key areas of deployment include customer engagement and personalised marketing, software development and data management, intelligent workflow, fraud and financial crime. and legal, contractual and compliance text analysis.
Firms are innovating with the technology but equally are being careful to manage the potential risks and ensure compliance with regulations, says UK Finance, which stresses the importance of understanding each AI use case, ensuring high-quality data, and maintaining transparency in how models are used.
Risk areas under consideration include the reliability of outputs, data privacy and security, and reliance on third party vendors.
Jana Mackintosh, managing director of payments and innovation at UK Finance, comments: “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."