When choosing an AI solution, companies should consider more than just the type of focus. They should be wary of vendors who simply bolt AI onto their existing products, scrutinize providers' data security practices, create a tailored risk framework for AI solutions, and prepare for upcoming regulations. The article concludes by stating that the institutions likely to get ahead will understand not just what AI can do, but also what kind of AI is right for them.
Key takeaways:
- Financial institutions need to scrutinize AI solutions and partners to ensure successful implementation, understanding the difference between horizontally and vertically focused AI solutions.
- Horizontally focused AI solutions offer a broad range of applications and are easy to implement, while vertically focused AI solutions are tailored to specific industries and their regulations.
- Companies should be wary of vendors who simply bolt AI onto their existing products, and should closely scrutinize providers' data and cybersecurity practices.
- Financial institutions should prepare for upcoming AI regulations and guidelines, familiarizing themselves with the AI Risk Management Framework and being ready for its companion piece coming this summer.