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Discover how EY can help the banking & capital markets, insurance, wealth & asset management and private equity sectors tackle the challenges of risk management.
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3. Leading on AI: setting the stage for innovation with strong governance models
The heightened risks AI presents call for a robust approach to governance and oversight. CROs understand the need to strengthen existing standards for data security and privacy and adopt new standards to address concerns about ethics and biased outputs, among other regulatory concerns.
The risk that insurers don’t do enough to embrace GenAI to drive innovation and business transformation should also be on CROs’ radars.
Our results highlight the need for CROs to be assertive in leading the development of new governance frameworks and policies to manage risks associated with all forms of AI and machine learning. Only 28% of insurers have established AI governance structures, roles or responsibilities, according to our survey respondents, though 60% say their firms are investigating or are in the process of implementing such structures. Similarly, only 26% of CROs say their companies have established controls to ensure responsible use of AI and machine learning in decision-making, with 50% of CROs saying their companies are investigating or have implementations underway.