Amid the AI Hype, What Should Your Bank Do? By Milton Bartley, President and CEO, ImageQuest There has been much excitement over how artificial intelligence can improve efficiency and productivity. Every conference, regardless of the host and theme, includes a session or sessions on AI, and articles everywhere trumpet the promise of AI. AI tools can analyze large volumes of data in real time and provide immediate decisions or guidance on subjects from creditworthiness to fraud detection. They can automate routine tasks, including compliance reporting, data entry and email or chat support, freeing your team to focus on strategic initiatives. AI tools can even write reports, generate presentations and craft custom marketing images. But while current market fervor may prompt jumping on the AI train, we want to caution our community banking friends to consider these points first. Regulators have yet to issue requirements surrounding the use of AI. But they are certainly discussing it. The Federal Reserve, the FDIC, the OCC, the CFPB and the Senate Banking Committee have all commented this summer on their concerns about the use of AI. The main fears center around potential discrimination in lending and criminals using AI to impersonate customers. In October, President Joe Biden issued an Executive Order on Safe, Secure and 8 West Virginia Banker
RkJQdWJsaXNoZXIy ODQxMjUw