At the Most Powerful Women in Banking conference this week, New York's top banking regulator said banks need to take full responsibility for the artificial intelligence models they use, even if they bought them from a third party.

The technology will take on routine, dull work, says Alenka Grealish, principal analyst at Celent.

Pilots of the technology show it can produce double-digit productivity improvements. But among experienced staff, it can have a negative impact.

The banks top a list of the largest banks in terms of AI talent, innovation and leadership. 

As more companies tout gen AI offerings, regulators are closely watching to see if what they say matches what they do.

Experts at Citi, Morgan Stanley and the London Stock Exchange have written a governance framework banks can use to mitigate the risks of generative AI.

The technology, which turns large language models into autonomous agents, could be a game changer for banks.

The European legislation prohibits or curtails what it deems to be risky usage of artificial intelligence. Banks will be caught in its net if they provide or deploy such AI systems in the EU.

Many people are jumping on the AI bandwagon without asking the most basic questions. FICO Chief Analytics Officer Scott Zoldi, who holds a Ph.D. in theoretical and computational physics from Duke University, has been in the business long enough to see the warning signs.