Banks Establish GenAI Governance Alongside Model Risk Management

Key facts

• Three-quarters of banks have established standing committees for generative AI governance.
• Ownership of generative AI governance is fragmented among banks.
• Banks are developing generative AI governance in parallel with existing model risk management practices.

Banks are rapidly establishing governance structures for generative artificial intelligence (GenAI) models, with three-quarters of institutions surveyed by Risk Benchmarking having already put such committees in place. However, the ownership of these GenAI governance initiatives is fragmented across the banking sector. This development occurs in parallel with banks' ongoing efforts to manage the risks associated with traditional models, indicating a dual focus on both established and emerging AI technologies.