Banks split on human oversight of AI models

Risk USA: Most firms supervise their models, but one expert says they can be trusted to make decisions

Artificial intelligence robot
Should machine learning models be allowed to make risk decisions?

Financial firms have differing views on whether machine learning models should be allowed to operate without human supervision.

Stephen Hsu, head of model risk management for Pacific Western Bank, said he would not want an unsupervised model to make automated decisions – and neither would regulators.

“You let the machine make the decision, probably the first question would be from the regulators, because they probably would not prefer that you let the machine make the decision,” said Hsu. “I

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here