In the evolving landscape of financial services and technology, executives find themselves under growing scrutiny. The Financial Accountability Regime (FAR) calls for transparency, ethical behaviour, and personal responsibility. But with Artificial Intelligence (AI) integration at an all-time high within organisations a key challenge arises: How do we ensure AI integration aligns with FAR obligations?

As AI continues to evolve, its implementation presents both promise and risk, with generative AI and predictive AI at the forefront of these discussions. These technologies can revolutionise financial operations, yet they also introduce complex ethical considerations and privacy concerns. This isn’t just about compliance—it’s about maintaining trust and integrity in an increasingly digital landscape.

Fred Kofman aptly said; “Power is the prize of responsibility; accountability is its price”.

Amidst the buzz surrounding AI, it’s crucial to recognise that rapid adoption and its potential benefits don’t absolve organisations from their duty to uphold ethical standards and accountability. Key risk mitigations to maintain accountability, trust, and integrity in the AI landscape are humans involved and high data quality:

  • AI is used to accelerate decision-making and the resultant outcomes. Under FAR, the executive remains the accountable person for the outcome no matter the process to get there. Adopting AI solutions ensures that there is a human involved to approve decisions and mitigates the risk of unwanted and potentially catastrophic outcomes.
  • The speed to decision as a feature of all AI places an even greater emphasis on data quality. Poor-quality data is the enemy of automation. Bad data in the AI era is (Bad data)2 and can lead to catastrophic outcomes. Accountability in the AI era increases the diligence required to ensure high data quality, again mitigating risk.

Enter the role of governance, the supporter of FAR frameworks.

Governance plays the vital role of embedding accountability into the core of all projects, including AI projects. Governance ensures transparency, ethics, fairness, and responsible decision-making are at the foundation of these projects. Governance can navigate the balance between innovation and risk, striving to prevent unintended consequences and optimise processes without compromising members.

At the end of the day, visibility over risk demands governance. At IQ Group we understand this need as well as the shifts AI demands and can provide comprehensive insight over activities, aligning them with FAR obligations.

Written by Angie Perry, John Hogan, and Mal Collins