must ensure that data collection and use align with customer expectations and comply with relevant privacy laws, such as the Gramm-Leach-Bliley Act. Compliance and Regulatory Uncertainty AI regulation in banking is evolving. The lack of standardized AI compliance rules creates ambiguity. Regulators are increasingly requiring banks to demonstrate governance over AI systems, including the documentation, testing and monitoring of bias or risk. Best Practices for AI Adoption in Banking To realize the benefits of AI in banking while minimizing risks, institutions should consider the following practices: 1. Start with Controlled Use Cases: Begin with low-risk areas such as internal automation or customer support before extending to high-stakes areas like lending or fraud detection. 2. Build an Internal AI Policy: Define clear guidelines around data usage, model governance, fairness testing and risk assessment. Ensure these policies evolve in tandem with technological advancements and regulatory changes. 3. Involve Compliance and Risk Teams Early: Ensure your risk, legal and compliance experts are part of the design and deployment process. Their input will help shape AI systems that meet regulatory and ethical standards. 4. Stay Informed: Monitor updates from banking authorities such as the Office of the Comptroller of the Currency (OCC), the FDIC, and the ABA for guidance on AI use and upcoming regulations. 5. Prioritize Explainability: Favor AI tools and vendors that offer transparency, documentation and model explainability. This will reduce friction with examiners and support internal auditing efforts. Strengthen Your Bank’s IT Strategy with RESULTS Technology The future of banking technology holds great promise, but realizing that promise requires a combination of responsibility, collaboration, and a sustained commitment to secure and strategic implementation. By starting with thoughtful use cases, developing robust internal governance, and staying aligned with regulators, banks can leverage technology to serve customers better, mitigate risk and drive innovation. Dive into an immersive, educational experience at ICBA LIVE. From powerful keynote speakers and substantive learning labs to high-energy networking events and cutting-edge fintech showcases, ICBA LIVE offers educational tracks for every role. Anchored in purpose. Powered by learning. 60+ Educational Learning Labs. In-depth learning and practical strategies tailored to today’s banking challenges. Banker Roundtables. Peer- and expert-led discussions where bankers exchange ideas, challenges, and best practices in an open, collaborative setting. Inspirational Keynotes. Dynamic speakers share powerful stories and insights to energize and motivate community bankers for the year ahead. Bank Director Specialty Programming. A focused program designed to equip bank directors with governance insights and strategic guidance. Attend eligible ICBA LIVE learning labs and earn Continuing Professional Education (CPE) credits. Early bird deadline ends Nov. 21 Register at ICBA.org/live Chart Your Course at ICBA LIVE 2026 March 6-9 San Diego Convention Center NEBRASKA INDEPENDENT BANKER 19
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