“Perhaps the biggest challenge for financial services in leveraging AI will be “Shadow AI.” Like its predecessor, Shadow IT, employees already use their generic AI tool to answer questions, create documents, and serve customers. Unfortunately, these tools are not built for financial services alone and require significant fine-tuning and oversight to ensure that accurate information is being delivered…
However, a policy is just a piece of paper. This is where “Shadow AI” becomes real. The next course of action is for banks to outright block access to generic AI tools, because it’s safer than exposing their data to the unknown. This means the “Have Nots” run the risk of being left behind again. Another technological revolution that favors the well-resourced.”