Banks, Credit Unions, and AI; OH MY: Unveiling AI Risk and Embracing Opportunities

If you've kept a finger on the digital pulse lately, you've certainly bumped into Generative AI and Large Language Models (LLM), symbolized by powerhouses like OpenAI's ChatGPT, Anthropic's Claude, Google's Bard, and Bing's AI Chatbot by Microsoft, are rapidly becoming a defining feature of our digital era. Beyond Silicon Valley, this technology could make ripples even in sectors as traditional as community banking. As a leader in the community banking space, does the thought of it make you anxious or excited¹? You might be wondering if your team should embrace any of these platforms, and more importantly, are you prepared for the risks and rewards they bring?

Generative Artificial Intelligence, or GenAI for the tech-savvy, isn't just a fancy term from sci-fi movies. Dive into Wikipedia², and you'll learn it's about machines capable of creating content - from text and images to more advanced media. These AI systems train on vast datasets, soaking up patterns, and then craft fresh data mirroring similar patterns.

Now, how does that fit into the world of banking³, you ask? Imagine AI-powered chatbots serving your customers round-the-clock or marketing campaigns crafted in minutes, not weeks. Or envision a system that aids in financial forecasting by analyzing intricate patterns in data that the human eye might miss.

But as you mull over integrating GenAI into your institution's arsenal, a little voice might nudge you: "What about the risks?" Every piece of technology, no matter how revolutionary, carries its baggage of potential pitfalls. So, let's dive into some of the risks associated with Generative AI in the banking realm.

Cybersecurity Concerns with GenAI

Generative AI, as shiny and promising as it is, comes bundled with its set of concerns, and right at the top is - you guessed it - cybersecurity. It’s like introducing a charismatic stranger into your house. Exciting, but you can't quite shake off the worry. Being a nascent technology, GenAI brings the potential for vulnerabilities⁴, maybe even more than some tried-and-tested software.

Banking on GenAI? Brace yourself for data confidentiality concerns⁵. Just as you wouldn’t openly chat about account details in a cafe, information shared with GenAI platforms, especially on default settings, could be akin to broadcasting in that cafe. Confidential details could unwittingly slide into the wrong hands, potentially leading to leaks of proprietary or sensitive data.

Now, here's the silver lining: Most community banks and credit unions, including yours, likely have robust information security policies and mechanisms in place. Think of them as your institution's bouncers. While you ponder on the potential of GenAI, it might be prudent to put up the 'Entry Restricted' sign, at least temporarily⁶. Assess, analyze, and understand the risks. Crafting a specific GenAI Acceptable Use Policy (AUP) might be a solid move, coupled with training sessions for potential users. And yes, a tweak or two in your technical controls to ensure that GenAI plays well within your digital boundaries.

As we've uncovered the cyber risks of GenAI, our next segment dives deeper into the intricate web of third-party dependencies and the broader implications of this technology. Stay tuned!

If you've got more questions about the risks of AI reach out to us any time at support@bedelsecurity.com. 

Referenced Articles and Additional Resources

1. Anxious or Excited
https://www.theatlantic.com/health/archive/2016/03/can-three-words-turn-anxiety-into-success/474909/ 

2. Wikipedia on Generative Artificial Intelligence 
https://en.wikipedia.org/wiki/Generative_artificial_intelligence 

3. How does that fit into the world of banking?
https://www.thebanker.com/Generative-AI-could-save-banks-billions-1688025535 

4. Vulnerabilities
https://owasp.org/www-project-ai-security-and-privacy-guide/ 

5. Data Confidentiality Concerns
https://mashable.com/article/samsung-chatgpt-leak-details 

6. Put up the 'Entry Restricted' sign, at least temporarily
https://techcrunch.com/2023/05/02/samsung-bans-use-of-generative-ai-tools-like-chatgpt-after-april-internal-data-leak/