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AI: the new frontier

“To safeguard our banks, we must understand how AI is
being used today for the good and the bad, then evolve our
risk management procedures accordingly.”

If you’ve ever watched an episode of Star it’s not the technology that warrants
Trek, you’ve heard its famous introduction scrutiny; it’s the application. As any
proclaiming we must “boldly go where no technology evolves, we must lean into
man has gone before.” With artificial existing guidance around fair lending and
intelligence (AI), this may be our new reality. privacy, regardless of what the tool is.
There’s a fine line as we think about and
Today, we’re seeing AI and related understand the new, unknown risks AI might
technologies—such as robotic process
REBECA automation and machine learning— create, but fortunately, we have an
ROMERO employed in a wide range of applications, opportunity to weigh in and identify those
concerns as they emerge. We can be more
RAINEY from back-office operations to fraud surgical in our approach to future guidance
detection systems and more.
ICBA President and CEO. to allow for the technology to evolve.
rebeca.romerorainey@icba.org As new AI-powered solutions are introduced,
we recognize both the opportunities and In the meantime, community bankers can
ACB is the ICBA stay up to speed on AU developments
Arkansas state affiliate. risks they bring. Just as easily as AI can help through resources like the articles in this
detect anomalies to flag potential fraud, so issue as well as education opportunities,
can it be used to create a customer deepfake
to enable a fraudulent transaction. To including our AI Demystified: Webinar Series
or our AI Solutions Forum. (Find out more
safeguard our banks, we must understand about these resources at icba.org/
how AI is being used today for the good and
the bad, then evolve our risk management education.) As we attempt to boldly go
where community banking hasn’t gone
procedures accordingly.
before with AI, we are armed with the
That very balance means that as we explore information we need to use it for the benefit
AI opportunities, we do so with an eye of our banks and our customers in a
toward our dedication to safety and strategic, safe, sound and efficient manner.
soundness. At the end of the day, AI is a tool
and utility, and as with any technology, it’s ___________________
incumbent on us as users to determine how Where I’ll be this month
it can be used and where the risks lie.
I’ll be meeting with the Council of
But as we navigate this new AI space, we’re Community Bank Executives in Fort Worth,
asking regulators to not be overly
Texas, and then spending time with the
prescriptive with their guidance. We need Bankers Bank Council—both of which will
the flexibility to explore this technology as
likely include AI as a topic of conversation. I
we remain alert to potential pitfalls. am also very excited to be making a trip to
As we shared in our response to the Treasury Tampa, Fla., to meet with our TCM Bank
Department’s request for information on team.
AI—available in full at icba.org/advocacy—

A RKANSAS | 25 | Fall 2024
COMMUNITY BANKER