I had the privilege of being invited to speak and host a workshop at America’s Credit Unions’ Regulatory Compliance School a few weeks ago. This was an opportunity for Credit Union experts to gather to discuss all things compliance, and my sessions particularly focused on AI and how it should be approached from this perspective.
I included the full presentation below but wanted to cover two key points from these discussions.
Using AI tools is not a question of “if”, but rather “when and how.”
Most institutions are already using some level of AI, in things like transaction fraud prevention and the suggestions for completing sentences that happen on our phones and email. As AI gets better and better there are also emerging areas where it is being used. This includes using it in underwriting, AML/BSA efforts, and generative AI for internal assistance.
With all these new applications one thing remains paramount: the data. In the models being used, a large volume of high quality data is needed, ensuring throughout that it is properly tagged. It is also crucial to have a clear data-driven definition of the good versus bad outcomes.
As someone who was long a skeptic on the hype, I am now rapidly seeing yesterday’s hype become today’s reality for many use cases.
It is therefore very important to be proactive about this.
Many colleagues within your organization are already using AI tools, whether you know it or not, so you must establish clear policies and controls now for both internal use and vendor oversight.
It is also important to establish an ongoing process for evaluating potential use of tools and use cases.
For Bridgeforce Data Solutions, that has meant sending most of our team to AI-focused workshops, along with significant focus on defining the right use cases and controls for the tools we are considering.
Once the use cases are defined, we are doing careful due diligence to ensure that data and IP would be appropriately protected.
We have already started using AI-powered tools for some internal use cases and expect to be piloting AI-powered features of our products within the next few months.
Conclusion
With AI being a focal point for many Credit Unions and businesses, it is necessary to take the proper precautions to ensure that the necessary compliance measures are met. Identifying future use cases and estimating their potential impact, as well as proactively addressing potential issues is the right start to taking advantage of today’s technology.
Click here to view the full presentation!
If you are interested in learning more about these topics, especially when it comes to the importance of data quality when using AI, feel free to contact us here.
