• Usman M. Sheikh and Michael Garellek
• 2024-12-12
• Trade Show News
• (0)

Canada: Artificial intelligence brings greater risks to financial institutions,

in short On September 24, 2024, following in-depth consultations with industry participants, the Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Authority of Canada (FCAC)1 Published findings on the use and adoption of artificial intelligence (AI) by federally regulated financial institutions. The report emphasizes that by 2026, the vast majority of financial institutions will adopt artificial intelligence and lists some of the key risks that arise from the use of artificial intelligence by financial institutions. OSFI and FCAC emphasized the need for financial institutions to adopt dynamic and responsive risk management systems in relation to artificial intelligence and confirmed their commitment to developing more specific best practices for industry participants. On September 24, 2024, OSFI and FCAC released a report on the use and risks of artificial intelligence at federally regulated financial institutions (hereinafter referred to as "Artificial Intelligence Report"), which includes the results of a voluntary questionnaire recently sent to financial institutions in December 2023…