AFSA Comments on AI / ML
In the RFI, the agencies sought information on FIs’ risk management practices related to the use of AI, barriers or challenges when developing AI, and benefits to financial institutions and their customers from its use. The agencies requested input from all relevant stakeholders to see if any clarification would be helpful from the agencies to FIs to ensure AI is used in a safe and sound manner and in compliance with applicable laws and regulations.
In the letter, AFSA also outlined ways in which FIs identify and manage risks related to the “explainability” of AI and how FIs adhere to certain statistical sound development standards and practices to ensure its predictability and avoid overfitting. In addition, AFSA explained how FIs use various techniques to evaluate the compliance of AI-based credit determination approaches.
July 1st, 2021 by Dan Bucherer