PwC's Chief AI Officer on how new tech is changing financial services: "Cost is part of the discussion"

At the same time, banks have been cautious about adopting AI more broadly because of regulatory expectations. For example, supervisory guidance such as SR 11-7 requires banks to manage model risk and make sure that quantitative decision-making methods are accurate, well-governed, and properly validated. As a result, AI models increasingly need to be explainable and auditable to meet regulatory standards.AI is already being used in banking and capital markets to automate routine processes, enhance customer e ...