AI in banking and risk management

The financial sector is abuzz with the potential of generative artificial intelligence (GenAI) to revolutionise risk management. This Risk.net special report dives into some of the latest trends and use cases that are transforming this critical function for banks.

Deutsche Bank, for instance, recently unveiled its seven key use cases for GenAI at June’s Risk Live Europe conference, encompassing everything from digital assistants to automated document processing. These tools promise significant efficiency gains and cost reductions, as highlighted by the bank’s innovation head, Tim Mason.

Meanwhile, Ally Financial stands out as a leader in real-world GenAI implementation. By embracing a collaborative approach with regulators and a flexible technology partner, the firm has successfully deployed large language models to summarise customer calls, paving the way for more than 400 additional applications.

The potential for GenAI extends beyond the front office as well. Several major banks are exploring its use in decoding and revitalising legacy code. This could significantly ease the burden on tech teams and expedite critical projects.

But is GenAI a silver bullet? The report explores the challenges associated with integrating such powerful tools into the highly regulated world of finance. Risk management remains a paramount concern, and ensuring user expertise is crucial to responsible deployment.

The AI landscape is evolving fast, and banks will need to quickly determine their own strategies, priorities and objectives. This special report provides valuable insight into the transformative potential of GenAI in banking risk management and the practical steps needed to turn ideas into competitive advantage.