E.SUN Bank and IBM build AI governance framework for banking

E.SUN Bank is working with IBM to build clearer AI governance rules for how artificial intelligence can be used inside a bank. The effort reflects a wider shift in finance. Many firms already use AI for fraud checks and credit scoring, and some also use it to handle customer service queries. The new challenge is how to manage these systems in a way that meets legal and risk rules.

Banks face a growing list of questions as they deploy AI. How should a model be tested before it goes live? Who is responsible if it makes a wrong call? And how can firms prove to regulators that their systems are fair and safe?

To address those issues, E.SUN Bank and IBM Consulting have created an AI governance framework for banking. The project also includes an AI governance white paper that sets out how financial firms can build internal controls around AI systems. According to the companies’ press release, the work adapts global standards such as the EU AI Act and ISO/IEC 42001 for financial…