Not-for-profit organisation Financial Services Information Sharing and Analysis Center (FS-ISAC) has published a guideline to help financial institutions develop a practical data governance approach that harnesses the potential of Generative Artificial Intelligence (GenAI) without compromising security.
“GenAI presents enormous opportunities for financial firms to improve business operations, provide better customer service, and even improve their cybersecurity posture,” said Michael Silverman, chief strategy & innovation officer at FS-ISAC. “However, just like any new technological development, GenAI increases security risks when it’s not leveraged in a safe and compliant manner.”
More opportunity, less risk
Titled “More Opportunity, Less Risk: 8 Steps to Manage Financial Services Data with GenAI”, the guideline outlines eight foundational steps to help financial institutions implement an effective approach to using GenAI in data governance.
The eight foundational steps include the following:
1. Consider Your Risks
2. Data Selection Criteria
3. Create and Maintain a Data Lineage Inventory
4. Be Disciplined with Data Access and Authorisation
5. Obsessively Protect Your Customers’ Data
6. Use Best Practices When Building Effective Test Plans
7. Keep Current on Model Vulnerabilities
8. Require Your Vendors’ Transparency on Your Data Storage
Responsible AI use
“This guidance allows financial institutions to experience the positive offerings of GenAI by outlining the risks and corresponding steps to mitigate the threats,” said Silverman, highlighting the need to advocate for responsible AI use.
FS-ISAC cautions organisations about the risks associated with GenAI despite its significant potential for the financial services sector. Industry concerns about GenAI usage include data security, usage, privacy, and compliance.
