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Prediction: Financial institutions are appointing CAIOs to oversee AI initiatives and reduce the risk of consumer claims

Social, Technology
D&O and Financial Institutions
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Prediction

AI has reshaped the financial services industry. It is widely used to summarise information, automate credit and loan decisions, detect and prevent fraud, drive operational efficiency and productivity, and reduce the risk of human error. But if AI learns from incomplete or imperfect data, there is a significant risk of unintended discrimination or unconscious bias, and unchecked reliance on AI could affect large data sets within a customer base and ultimately lead to claims for consumer redress. Recognising the critical importance of AI to corporate strategy and operations and the claims risk, financial institutions are increasingly appointing Chief AI Officers (CAIOs) to oversee the execution and integration of AI projects, promote ethical AI-practices, and ensure the adoption of AI aligns with corporate vision and regulatory requirements.

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