AI Supervision - A 101 Guideline

The increasing adoption of artificial intelligence (AI) has seen an anticipated parallel rise in calls for AI control, governance and supervision. As a result, industry and regulatory bodies have published several sets of guidelines and principles encouraging best practice, self-governance and self-regulation in the development and use of AI models (see references below).

“All supervisors, regardless of rank and area of focus, should receive foundational AI training so they are equipped with a basic understanding of the different methodology types, considerations and terminologies”

The adoption of AI and future innovation of its use will only accelerate from hereon. The need for deeper AI understanding and control must keep pace. If such understanding and control lag behind the acceleration of use, the risk gap widens and there is increased vulnerability to unknown risks and their respective adverse consequences. There is a need to integrate these approaches – the issuance of new guidelines, principles and regulations for the supervised, as well as the adaptation of the supervisors to the rapidly changing reality.

Read the full article ‘The Impact of AI Adoption on Supervisors’ article at Central Banking.