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January 29, 2024

Banks: No shortcuts when vetting AI vendors

In an article for American Banker, John King argues that banks must carefully vet AI vendors to ensure their specific needs and requirements are met. King highlights the importance of evaluating a vendor’s AI governance processes, including ethical codes of conduct and conformity to AI governance standards. Additionally, banks should demand evidence substantiating performance claims and thoroughly test AI solutions. King advises banks to partner with expert third-party vendors to eliminate AI bias and ensure fairness and transparency. He suggests that banks should place multiple bets on different vendors, as the AI landscape is constantly changing and new players may emerge. Finally, banks should have a senior leader and cross-functional team in place to manage the use of generative AI and set standards and guidelines for its use within the organization.