3. Governance and Oversight • AI Governance Framework: Creating an AI governance framework to oversee AI initiatives, including the establishment of an AI ethics committee. • Risk Management: Implementing risk management procedures to identify, assess and mitigate potential risks associated with AI usage. • Regular Audits: Conducting regular audits and assessments of AI systems to ensure they are functioning as intended and adhering to established policies. 4. Employee Training and Awareness • Training Programs: Providing ongoing training for employees on AI technologies, data privacy and ethical considerations so the employee knows how to properly articulate questions to the AI to pull a result. • Awareness Campaigns: Running awareness campaigns to educate staff about the importance of data security and ethical AI usage. 5. Vendor Management • Due Diligence: Conducting thorough due diligence on AI vendors to ensure they adhere to the bank’s policies and regulatory requirements. • Contractual Agreements: Including specific clauses in vendor contracts regarding data privacy, security and ethical AI usage. 6. Customer Communication • Informed Consent: Obtaining informed consent from customers before using their data for AI applications. • Transparency: Clearly communicating to customers how AI is being used to enhance their banking experience and protect their data. Bailey Ronnebaum is the business development manager at forbinfi and works with over 100 financial institutions across the country to provide website development, marketing and branding solutions. For more information on forbinfi’s web and marketing solutions, please email or call Bailey at baileyr@forbinfi.com or (319) 274-8492. Visit www.forbinfi.com to see recent work examples and bank testimonials! 7. Continuous Improvement • Feedback Mechanisms: Implementing feedback mechanisms to gather input from customers and employees on AI systems and making necessary adjustments. • Staying Updated: Keeping up-to-date with the latest developments in AI and continuously refining policies and procedures to reflect best practices and regulatory changes. Many of the items just discussed may not be relevant if you do not have an AI tool customized to your bank that you will be entering customer data into, so keep this in mind as conversations progress around what AI you will be adapting and implementing. As AI continues to evolve, community banks have an exciting opportunity to harness its power while staying mindful of regulatory standards. By embracing these advancements thoughtfully, small banks can enhance their service offerings, improve security and remain competitive in a rapidly changing landscape. The future of AI in community banking holds great potential, paving the way for innovation and growth! 28 | The Show-Me Banker Magazine
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