most of these products are merely superficial configurations of a select few foundational models. Banks and credit unions can operate assuming that most vendor solutions share over 80% of their DNA with the foundational models they were built upon. Having this knowledge makes sifting through vendors a more manageable task and helps financial institutions make better decisions around vendor selection. Additionally, financial institutions should know how their vendors use AI. It is common for banks to unknowingly use AI through their vendors with tools like Adobe Acrobat and Salesforce, which implement generative AI features. Banks can secure their data across multiple contracts by understanding how their vendors incorporate AI and what foundational models they are building their solutions around. Many vendors have begun acquiring, building or partnering with new AI technologies to increase efficiency, with notable examples including ServiceNow, Alteryx and Adobe Acrobat. As a result, compliance can become compromised without proper protective clauses in existing contracts. This concern has caused financial institutions to delay adoption and miss out on operational efficiencies and cost savings. Considerations for Safe Adoption Taking foundational steps to ensure safe AI adoption enables financial institutions to implement AI risk-consciously. A successful AI policy that addresses data privacy, risk management and regulatory compliance helps curb the potential for internal misuse and data leakage. Moreover, implementing internal LLM assistants effectively prevents employees from sidestepping AI restrictions. Financial institutions should also provide secure internal tools for proprietary data, giving employees safe alternatives for proprietary data (e.g., Azure OpenAI, Microsoft Copilot). The banking ecosystem will be shaped by AI. As more financial institutions explore and eventually adopt these technologies, they must maintain security and compliance through a structured and proactive strategy. Connor Heaton is the director of artificial intelligence at SRM, an advisory firm serving financial institutions in North America and across the globe. He leads client engagements focused on artificial intelligence and helps organizations understand and adopt disruptive technologies. To learn more about SRM’s expertise in technology, payments and strategic sourcing, contact Colorado Representative Phillip Foster at pfoster@srmcorp.com or (303) 588-1484. 23 Colorado Banker
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