Danmarks Nationalbank has proposed five key points for financial institutions adopting artificial intelligence (AI) systems to optimize their operations. As AI gains traction in the financial sector, the central bank emphasizes the need for ongoing monitoring to prevent discrimination based on factors like race or gender. Failure to do so could lead to reputational damage and potential fines under upcoming EU regulations.
The five recommendations include maintaining a catalog of AI systems, continuous evaluation of models throughout their lifespan, sharing best practices, allocating appropriate resources for model evaluation, and assessing whether increased complexity justifies performance improvements.
While AI enhances the financial industry’s ability to identify patterns and make predictions, Danmarks Nationalbank underscores the importance of responsible AI implementation to avoid unintended biases and comply with ethical standards and regulations.