Large language models (LLMs)
Podcast: Ariye Shater and Hariom Tatsat on AI explainability
Barclays quants discuss their method for monitoring AI with mechanistic interpretability
Continuous verification holds key to keeping AI on track
Decision-by-decision testing will help users trust AI judgement calls
Beyond the black box: interpretability of LLMs in finance
Mechanistic interpretability identifies and locates modifications in computational mechanisms
Why AI agents are like staff you can’t trust
Uncertainty implicit in GenAI systems means risk managers have to take a more adversarial approach
As LLMs spread, quants confront ‘lexical risk’
Users are finding the uncertainty in GenAI models is hard to measure
BNP Paribas outlines path for FICC algos, SDP and AI projects
After taking on new Cortex and AI roles, BNPP’s Razaq sets out the bank’s expansion plans and new tech projects
A tidal wave of token costs threatens landfall
Soaring token usage is forcing financial firms to rethink the economics of modern enterprise AI
Banks building GenAI governance in parallel to model risk
Risk Benchmarking: Majority have established AI governance committees, but ownership is fragmented
AI agents for cash management in payment systems
The authors asses to what extent generative artificial intelligence models can assist with high-level intraday liquidity-management tasks in wholesale payment systems.
A third of banks do not maintain logs for GenAI models
Risk Benchmarking study finds few banks review prompt logs systematically, with larger firms focusing on higher risk use cases
From gatekeeper to coach: model risk bids to reinvent itself
Model Risk Benchmarking data reveals a function in flux, grappling with resource cuts, AI models, regulatory divergence
Agentic AI for XVAs still five years away, experts say
Risk Live: Questions about validation and accountability keep autonomous AI models out of XVAs for now
Managing AI models is reshaping three lines of defence, say banks
Risk Live: Model managers want seat at table during development, and expect first line to take charge of AI model testing
Operationalising AI in capital markets risk infrastructures
How firms are embedding AI into workflows such as FRTB capital calculation, P&L explain and intraday risk monitoring
Do banks still need to validate GenAI models?
Regulators carved out GenAI models from new risk guidance. Banks shouldn’t see this as a reason to stop validating them.
Quants like Andrew Ang are making the case for AI agents
AI agents can boost human managers by analysing investments, risks and portfolio choices at scale
AI risk management and the shift to capability control
By reframing validation, banks can align innovation with regulatory demands and maintain robust risk discipline, argues risk manager
Banks eye agentic AI to streamline KYC workflows
Execs from ING, JP Morgan and Standard Chartered tell how they plan to tap AI to optimise onboarding
The MIT professor giving LLMs a ‘brain scan’
Hui Chen’s research is yielding new ways to interpret – and steer – AI models
Basel III endgame – a timeline
A review of Risk.net’s coverage of the US implementation saga
New LLMs are proving to be surprisingly good quants
Strides in AI’s ability to do maths mean models can plausibly help with research