AI & automation · Article · 3 min read
You are exposed to generative AI risks, whether you use it or not
Published · Updated
Key takeaways
- • Generative AI risk does not depend on whether your institution uses it: fraudsters, vendors and staff already do.
- • Deepfake video and voice can defeat security protocols designed for a pre-AI world.
- • Every institution needs safe-usage policies and staff training now.
$25 million is wired out by a bank employee who thinks he is receiving instructions from his CFO on a video call. It turns out he was duped by generative AI's (GenAI) deepfake technology. And none of the bank's security protocols detected the fraud.
Many institutions believe that because they have not deployed generative AI, its risks don't apply to them. The opposite is true. Fraudsters use it, vendors embed it in their products, and employees use public AI tools, often without anyone knowing.
That is why every financial institution needs a generative AI risk posture: a clear view of where AI is used, a safe-usage policy, and staff who can recognise the new generation of AI-enabled fraud.
Go further
Advantages & Risks of Generative AI
Managing generative AI risks and safe-usage best practices for financial institutions. You are exposed whether you use generative AI or not.
FAQ
What are the main generative AI risks for financial institutions?
Deepfake-enabled fraud, leakage of confidential data into public AI tools, unsanctioned "shadow AI" use by staff, and inaccurate AI output used in decisions or client communications.
Sheila ShaffieCo-founderBusiness transformation leader who honed her skills at three GE businesses: Plastics, Healthcare and Capital. GE Master Black Belt, University of Chicago MBA and co-author of The McGraw-Hill 36-Hour Course: Lean Six Sigma.