Taking aim with AI

Artificial intelligence is the business topic of the times, with one Big Four outfit urging firms to, "Get on board or get out of the way." So, what are the risks, uses, sources of help, important steps and future issues? Neasa MacErlean reports.

How widespread is AI use in financial services?

About 75 per cent of the firms responding to an AI survey from the Bank of England and Financial Conduct Authority were using AI last year, with a further ten per cent planning to adopt it within three years. [1] In the internal audit profession, "interest in AI is growing rapidly, particularly within larger organisations where internal audit functions are established", according to Gavin Hayes of the Chartered Institute of Internal Auditors (IIA). Take-up of AI is varied, says industry body UK Finance. Some members have many live AI use cases; others are still in the experimentation stage. "Compliance teams are certainly active and interested," says Walter McCahon, UK Finance's principal on Privacy and Data Ethics. "Members are taking a careful approach... only going live with a use case once confident that it will be fully compliant." This cautious stance is also visible in the recruitment market. Emily Hamburg, senior manager (Risk, Compliance & Financial Crime) at Robert Walters, reports "a growing appetite" for hiring compliance professionals to develop and expand AI governance frameworks. "These frameworks are being strengthened to ensure that risks around AI are managed responsibly and ethically," she says.