Few banks formally evaluate GenAI human-in-the-loop controls

In the evolving landscape of financial technology, most banks aren't rigorously assessing the human-in-the-loop controls for generative AI, which raises concerns about oversight and risk management. While some established institutions and upstarts actively use tools to test these controls, many others depend on subjective judgment rather than formal evaluations. This lack of formal assessment could lead to unforeseen risks and vulnerabilities, especially as AI's role in banking operations continues to expand. It underscores a broader issue about the financial sector's readiness to manage the advanced risks that come with AI integration.