Lessons from AI in finance: Governance and compliance in practice

This article examines the evolution and implementation of AI governance frameworks in financial institutions, focusing on the critical aspects of regulatory compliance and risk management. The article investigates how financial institutions have transformed their operations through AI adoption, particularly in areas such as fraud detection, customer data privacy, and regulatory compliance. By analyzing current governance practices, success factors, and implementation challenges, the article demonstrates the significant impact of AI on operational efficiency, risk management, and customer service delivery. The article highlights the importance of early compliance integration, transparent documentation, and continuous monitoring in successful AI governance frameworks, while also addressing future considerations including enhanced regulatory scrutiny, evolving privacy regulations, and the growing emphasis on ethical AI implementation.