News & Analysis as of

Financial Institutions Machine Learning

A&O Shearman

BIS Innovation Hub Launches Project Noor to Explain AI Models for Financial Supervision

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The BIS Innovation Hub has announced the launch of Project Noor, a collaborative initiative with the Hong Kong Monetary Authority and the UK Financial Conduct Authority aimed at enhancing the transparency and accountability...more

K2 Integrity

[Webinar] Lonely Wolves: The Case for Deeper Collaboration to Prevent Fraud - September 9th, 9:00 am ET

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Fraud is a systemic issue and always involves more than one financial institution. Yet, there is no jurisdiction-wide technological solution for combating fraud; irrespective of the robustness of their individual counterfraud...more

Ankura

Facing the Auditing Challenge: Artificial Intelligence, Machine Learning, and Robotics in Financial Crime Compliance

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As artificial intelligence (AI) becomes central to financial crime compliance -- powering fraud detection, transaction monitoring, and sanctions screening -- internal audit faces a new challenge: How do you provide assurance...more

Ankura

Financial Services: Data Management Strategies for AI Readiness

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58 In the complex and highly regulated financial services environment, the cost of poor data management is staggering, estimated to cost businesses billions annually in operational inefficiencies, regulatory fines, and missed...more

Thomas Fox - Compliance Evangelist

Innovation in Compliance: Real-Time Fraud Prevention Strategies for Financial Loss Prevention with Vince Walden

Innovation is present in many areas, and compliance professionals must not only be prepared for it but also actively embrace it. Join Tom Fox, the Voice of Compliance, as he visits with top innovative minds, thinkers, and...more

Orrick, Herrington & Sutcliffe LLP

GAO Report Reveals How Financial Institutions (And Their Regulators) Are Using AI

Curious about how financial institutions, their service providers, and their federal regulators are using and overseeing machine learning and other AI tools? A new GAO report published on May 19th (the “Report”) provides a...more

Benesch

AI Reporter - May 2025

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The use of AI in banking was a topic in April, as Bank of America revealed it will spend $4 billion on AI initiatives in the coming year. The bank cited AI’s usefulness in reducing IT support calls and the over 90% usage...more

K2 Integrity

A Collaborative Approach to Customer Risk Assessment

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Unlock a New Era of Customer Risk Assessment - Legacy customer risk rating (CRR) models—built on static KYC data and subjective judgment—are no longer sufficient in a world of dynamic threats and tightening regulatory...more

K2 Integrity

AI-Driven Risk Assessment: Enhancing Financial Crime Compliance And Internal Audit

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In an era of increasingly sophisticated financial crimes and evolving regulatory, compliance, and internal audit needs, financial institutions must continuously refine their risk assessment strategies. Traditional methods,...more

Quarles & Brady LLP

Warning! ChatGPT Exploit Used by Threat Actors in Cyber Attacks

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Members of the health care and financial industries, along with other industries that hold sensitive data, are warned that a ChatGPT vulnerability is being actively exploited by threat actors to attack security flaws in AI...more

Orrick, Herrington & Sutcliffe LLP

Fed’s Barr discusses generative AI’s potential impact on financial stability

On February 18, Fed Vice Chair for Supervision, Michael S. Barr, delivered prepared remarks at the a conference, discussing the rapid advancements in AI and its potential impact on the economy and financial stability. Barr...more

MoFo Tech

AI Trends for 2025 - AI and Financial Services: Balancing Innovation with Regulatory Compliance

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As the adoption of artificial intelligence (AI) continues to expand, the financial services industry is leveraging this technology in many ways. AI’s application in credit decision making has become increasingly prominent,...more

A&O Shearman

UK Treasury Committee publishes call for evidence on AI in financial services

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The UK Treasury Committee has published a call for evidence on AI in financial services, in light of growing use of the technology across the sector including in retail banking, investment banking, insurance and pensions...more

Carlton Fields

2 Across: Changing Financial Product Recommendations

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Artificial intelligence (AI) can and is already changing how firms and registered representatives recommend financial products to customers. AI has the potential to enhance recommendations that registered representatives...more

Bradley Arant Boult Cummings LLP

CFPB Examinations Highlight Fair Lending Risks in Credit Scoring Models

Amid recent technological advances in artificial intelligence and machine learning, on January 17, 2025, the CFPB issued its Winter 2025 Supervisory Highlights: Advanced Technologies Special Edition. This edition of...more

K&L Gates LLP

Managing Artificial Intelligence: The Monetary Authority of Singapore's Recommendations on AI Model Risk Management

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Introduction and Background - On 5 December 2024, as part of the Monetary Authority of Singapore’s (MAS) incremental efforts to ensure responsible use of artificial intelligence (AI) in Singapore’s financial sector, MAS...more

Mayer Brown

Applying the Enterprise Risk Mindset to AI

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Artificial intelligence (AI) and other emerging technologies have the potential to revolutionize the financial industry. At the same time, its use introduces new risks that need to be anticipated and addressed. This paper...more

Troutman Pepper Locke

CFPB Highlights Fair Lending Risks in Advanced Credit Scoring Models

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Last week, the Consumer Financial Protection Bureau (CFPB or Bureau) released its latest Supervisory Highlights report, focusing on the use of advanced technologies in credit scoring models. ...more

Harris Beach Murtha PLLC

Key Takeaways for the Finance Sector from the U.S. House’s AI Task Force

In December 2024, a task force consisting of 24 representatives from the Democratic and Republican parties issued a 273-page report with key findings and recommendations in relation to Artificial Intelligence on a...more

A&O Shearman

Mansion House: New Remit Letters for UK Financial Conduct Authority and Prudential Regulation Authority to Focus on Growth

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HM Treasury has published remits and recommendations for the U.K. Financial Conduct Authority and Prudential Regulation Authority, set out in a letter sent from Rachel Reeves, Chancellor of the Exchequer, to Nikhil Rathi, FCA...more

A&O Shearman

Bank of England and UK Financial Conduct Authority Findings on Third Survey of Artificial Intelligence and Machine Learning in UK...

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The Bank of England published the findings of its third joint survey with the U.K. Financial Conduct Authority on the use of Artificial Intelligence and machine learning in financial services. The survey aims to build on...more

Harris Beach Murtha PLLC

AI Regulation in the Financial System: Insight from the Federal Reserve

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Federal Reserve Governor Michelle W. Bowman recently delivered insightful remarks at the 27th Annual Symposium on Building the Financial System of the 21st Century, emphasizing the transformative potential of artificial...more

A&O Shearman

Financial Stability Board Report on Financial Stability Implications of Artificial Intelligence

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The Financial Stability Board has published a report outlining recent developments in the adoption of AI in finance and their potential implications for financial stability. The report notes that AI offers benefits from...more

A&O Shearman

UK AI: existing regulators take the lead

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As further initiatives come in to play and legislation is on the horizon, existing regulators (such as the ICO, CMA, Ofcom and FCA) continue to press on with their approach to AI regulation, including through the Digital...more

Davis Wright Tremaine LLP

FinCEN Warns of Criminal Use of Deepfake Technology to Circumvent Controls

Generative artificial intelligence (AI) holds tremendous promise for financial institutions and their customers. But that promise comes with potential peril, as highlighted in a recent alert issued by the U.S. Treasury...more

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