Key facts
- A study revealed that one-third of banks do not systematically log production prompts and outputs for generative AI models.
- Only a single specialist European lender registers and reviews complete records for its GenAI models.
- Larger financial institutions are prioritizing higher-risk applications of GenAI.
- The findings are part of Risk Benchmarking's inaugural Model Risk Management (MRM) study.
A recent study by Risk Benchmarking has highlighted a significant gap in the management of generative artificial intelligence (GenAI) models within the banking sector, with a third of surveyed institutions not maintaining systematic logs of production prompts and outputs. The inaugural Model Risk Management (MRM) study found that only one specialist European lender registers and reviews complete records for its current GenAI models.
Larger firms participating in the study indicated a focus on higher-risk use-cases for GenAI, suggesting a strategic approach to deployment despite the logging deficiencies. The findings underscore a broader challenge in ensuring robust oversight and accountability for AI technologies as they become more integrated into financial services.