Announcing Braithwate’s AI/ML risk management service
UK supervisory authorities recently published a Discussion Paper (DP5/22) about the impact of Artificial Intelligence 🤖 on the UK 💷 financial services market.
72% of UK financial services firms surveyed by BoE reported using or developing ML applications in house and expect the number of ML applications to increase by 3.5x in the next 3 years.
Given the large-scale adoption of AI tools in the financial services infrastructure, it is important to understand what this means for consumers, firms and wider markets.
“If you are working on an AI-driven process or product and not sure how AI risks may impact your firm, please 👋 reach out for an initial consultation. At Braithwate and Holistic AI we have proven tools and methodologies to help you adopt AI with confidence.”
Here's a quick summary of DP5/22 views of AI risks on UK financial services ecosystem.
AI risks can materialise at different levels within AI systems:
🗂 Data: AI can analyse volumes and ranges of data beyond human capabilities; however AI can also perform not as intended due to data quality issues or biased training data sets
🔍 “Blackbox” models: AI disrupts traditional rule-based models and alters parameters iteratively, making them opaque and hard to explain
🤝 Governance: the removal of human judgement in decision-making and oversight poses accountability challenges and has substantial implications for existing governance models
Sample AI risk types against UK financial services supervisory objectives: