Business lines must answer for ML biases – OCC’s Dugan

Banks cannot blame developers or vendors for faulty machine learning models, says regulator

Beth Dugan, Office of the Comptroller of the Currency

Regulators will hold business units accountable for machine learning (ML) biases that result in unfair business decisions, a top regulator at the Office of the Comptroller of the Currency (OCC) said today (June 18) at the OpRisk North America conference in New York.

ML techniques, a subset of artificial intelligence (AI), are being used by banks to automate and speed up data-intensive processes, such as credit approvals and anti-money laundering checks. But ML models’ reliance on historical