Banks Invest in Responsible AI Talent and Research as Adoption Unfolds
The financial sector is undergoing a significant transformation as banks increasingly integrate artificial intelligence (AI) into their operations. Recent research indicates that the industry has ramped up its hiring of professionals specializing in governance and the ethical use of AI technologies.
Dive Brief
According to research by Evident Insights, the number of banks employing dedicated AI governance professionals rose from 31 to 41 among 50 large banks surveyed from Q4 2023 to Q4 2024. This trend reflects a growing commitment to ensuring the safe and responsible implementation of AI solutions.
Furthermore, more than half of the banks tracked have established AI oversight teams, and executive-level AI governance roles now exist at 33 banks, a substantial increase from just 15 in 2023. This indicates a clear shift toward prioritizing governance and risk management as AI technologies become more prevalent.
Responsible AI Research Initiatives
Leading banks are also prioritizing in-house research to facilitate the responsible adoption of AI technologies. For instance, JPMorgan Chase has emerged as a frontrunner, publishing the most research on responsible AI in the last three years. The total number of responsible AI research papers published by the surveyed banks surged by 136% during this period.
As generative AI technologies gain traction, major players in the banking sector are leveraging these innovations. In September, JPMorgan Chase launched the LLM Suite AI assistant for 140,000 employees, while Morgan Stanley introduced the AskResearchGPT chatbot internally shortly after.
Generative AI Adoption in Banking
The industry is witnessing a pivotal moment as generative AI technologies are increasingly deployed. Citigroup, for example, equipped 30,000 of its developers with generative AI coding tools, and BNY Mellon expanded its partnership with OpenAI to enhance its Microsoft Copilot-enabled Eliza generative AI platform.
According to a January report from the IBM Institute for Business Value, generative AI is poised for a breakthrough in banking. While many banks are still in the early phases of deployment, a notable shift towards a more strategic approach is apparent. Shanker Ramamurthy, the global managing director of banking and financial markets at IBM Consulting, stated that institutions are moving from broad experimentation to targeted applications.
Leadership and Governance in AI Adoption
The research from Evident Insights underscores the crucial role of leadership, governance, and risk controls in shaping effective AI adoption strategies. Despite the growing emphasis on responsible AI, the number of professionals specializing in governance, risk, and ethics within the financial sector remains relatively small, totaling just 247 individuals across the 50 banks surveyed in Q4 2024.
JPMorgan Chase, which led the industry in AI adoption last year, employed 20 governance professionals, nearly three times the average. The bank’s proactive approach includes filing a patent application for a model bias risk assessment tool as part of its commitment to responsible AI initiatives.
In conclusion, as the banking sector navigates the complexities of AI integration, the focus on responsible governance and ethical practices will be paramount. The industry’s ongoing investment in talent and research signifies a strategic shift towards a more mature and responsible use of AI technologies.
