Financial institutions are increasingly using Artificial Intelligence (AI) for fraud detection, credit assessments, customer engagement and data-driven decision-making, placing new focus on governance, accountability and regulatory readiness.
According to Tayyibah Suliman, Head of the Technology & Communications sector at leading law firm Cliffe Dekker Hofmeyr (CDH), the shift now is from adoption to oversight. “As AI becomes essential to operations, institutions must ensure their systems align with evolving regulatory expectations and strong governance frameworks,” she says.
The growing use of AI, as reflected in a recent report by the South African Reserve Bank Prudential Authority and the Financial Sector Conduct Authority, raises key legal and operational risks, including data protection, cybersecurity, algorithmic bias and transparency of automated decisions.
As regulators sharpen their focus, financial institutions will need to demonstrate responsible AI deployment alongside innovation.
Stay tuned for a Q&A interview with an expert on the topic, Tayyibah, who will be tackling questions on the topic and sharing her insights.
