If there is one area where AI is making a massive impact in financial services, that area is cybersecurity.
A recent report from the U.S. Treasury Department underscores the opportunities and challenges that AI represents to the financial services industry. The product of a presidential order and led by the Treasury’s Office of Cybersecurity and Critical Infrastructure Protection (OCCIP), the report highlights in particular the growing gap between the ability of larger and smaller institutions to leverage advanced AI technology to defend themselves against emerging AI-based fraud threats.
In addition to what it calls “the growing capability gap,” the report – Managing Artificial Intelligence-Specific Cybersecurity Risks in the Financial Services Sector – also points to another difference between larger and smaller financial institutions: the fraud data divide. This issue is similar to the capability gap; larger institutions simply have more historical data than their smaller rivals. When it comes to building in-house, anti-fraud AI models, larger FIs are able to leverage their data in ways that smaller firms cannot.
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