BIS Report says regulatory action on AI model explainability is imperative

But regulators may also need to find middle ground between AI performance and explainability in order to make continuing innovation and adoption by financial institutions possible.

The BIS report notes that AI use is becoming prevalent in financial institutions and now touches on many of their business activities. And in the financial ecosystem it is increasingly being used not only to enhance internal productivity, but to support critical business areas.

This widespread adoption of AI is

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