Decide What You Stand For

Decide What You Stand For

The CEO of a tech company apologized last summer after an AI coding agent deleted a customer’s live, operational database that supported the company’s applications and services, and then lied about it and tried to cover its tracks. The bot eventually admitted to its lies, according to Cybernews. 

Banks that have survived crisis after crisis have risk management built into their DNA. This is perhaps why banks have been careful about using generative AI, which produces text, audio and images, in customer-facing applications — the banks’ reputation and corporate values are on the line. 

Joy Fisher, a principal at CliftonLarsonAllen, notes that many companies are actively exploring the business applications of AI. While these discussions are critical as organizations assess the impact of emerging technologies, AI should not be evaluated in isolation. Conversations about AI adoption must be accompanied by thoughtful consideration of corporate governance and ethical responsibilities, she says. As organizations develop AI strategies to support their business objectives, they should also establish clear governance frameworks. These frameworks should address accountability, transparency, data stewardship and ongoing oversight to help AI systems earn trust with customers, regulators and internal stakeholders. Leaders should be asking fundamental questions such as: How does AI affect stakeholder trust? How reliable are the models being used? What safeguards are in place to protect security and data privacy? And how can organizations ensure AI is being deployed responsibly and for the greater good?

AI presents significant opportunities for banks and other organizations, but it is essential to evaluate whether the underlying algorithms and technologies align with corporate values, Fisher says. “We can’t hide behind the black box,” she explains, referring to the limited transparency that often accompanies AI-driven decision-making. “We can’t hide behind the curtain or claim ignorance about how an algorithm works and shift that responsibility to someone else. Leadership teams must continue to take ownership of their organizations’ practices. Even when technology performs the task, it remains the responsibility of corporate leaders to consistently evaluate, govern and oversee how AI is used.”

As companies evaluate the transformative power of new technology, old wisdom doesn’t change. As the late business guru and professor Clayton Christensen once wrote, “Decide what you stand for. And then stand for it all the time.”

• Naomi Snyder, editor-in-chief for Bank Director