• April 25, 2024

Products and tools incorporating AI, including intelligent automation software, are a higher priority for most financial organizations than they were a year ago, according to a new report from data aggregator and credit bureau FICO. The third annual State of Responsible Artificial Intelligence (AI) in Financial Services report found 52 percent of financial services businesses were more committed to investment in AI-related technologies compared to 2022, but AI ethics are not part of the strategy for more than two-thirds of those companies.

“Even though we have seen a growth in demand for AI-driven financial products and offerings, many financial services firms have yet to develop and hold themselves accountable to Responsible AI standards,” said Scott Zoldi, chief analytics officer at FICO. “Beyond fulfilling an ethical responsibility to their customers, implementing standards for Responsible AI that is explainable, auditable, and ethical helps to improve brand loyalty, reduces reputational risks, and better enables regulatory standards to be met.”

While the report found only eight percent of those polled said their AI strategies are fully mature, the benefits of implementing Responsible AI were becoming more widely known. Nearly three quarters of those employing Responsible AI practices found it enabled them to deliver better experiences for customers. Sixty-nine percent reported Responsible AI created new revenue opportunities and 63 percent said it protects brand equity or minimized reputational risk.