CBA is establishing a dedicated AI risk committee for governance

The Commonwealth Bank of Australia (CBA) has classified artificial intelligence (AI) as a “significant risk type” under its risk management framework, as the financial institution continues to develop its use of the new technology.

CBA’s governance structure for AI is detailed in a transparency report on how the bank has used the new technology over the last decade.

A material risk designation means that the bank’s board prepares annual risk appetite statements for AI use, just as it does for credit and liquidity exposures.

To this end, the CBA has established a dedicated AI Risk Committee…