Operational efficiency is top of mind for nearly all corporate leaders, with artificial intelligence (AI) use cases gaining traction across industries. While AI has proved to offer a variety of benefits and astound users with its results, those in heavily-regulated industries–like financial services–are posing serious questions about the security, data validity, and ethics of this technology, particularly when it comes to data privacy.
Whether a financial institution aims to use AI to improve contract management, provide customers with better experiences, improve fraud detection, or otherwise, the parameters governing how the data is ingested and retained are of the utmost importance.
“Financial, legal, IT, and operations teams should evaluate appropriate data privacy regulations when considering their integration of AI to remain compliant and avoid getting into hot water with customers, stakeholders, or regulatory bodies,” says Colby Mangonon, Associate General Counsel at Evisort. She adds that “financial intuitions should also ensure the AI integration is safeguarded by strong information security framework and data processing policies to protect customer data.”
