Navigating the AI era: Effective board leadership is crucial

January 31, 2024
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Navigating the AI era: Effective board leadership is crucial

In today’s ever-evolving banking landscape, board directors face a multitude of risks that demand their attention. At the forefront of these concerns is the rise of AI and machine learning.

The significance of effective board oversight cannot be overstated, particularly as generative AI presents unprecedented opportunities across various facets of the business, spanning finance, IT, product development, customer service, and #marketing. Forward-thinking banks are poised to harness AI-powered risk management strategies, fortify their operating models, and foster ecosystems anchored by robust data governance and comprehensive ethical, legal, and regulatory frameworks for generative AI.

In evaluating their organization’s readiness, boards must ascertain the presence of a data-driven and innovation-centric culture. Enterprises that have already cultivated such cultures are likely to excel in deploying generative AI. It is crucial that generative AI aligns not only with business objectives but also with the company’s core values. Consequently, change management and workforce alignment should be integral components of the larger equation.

https://www.ey.com/en_us/board-matters/banking-risks-from-ai-and-machine-learning

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