BSP explores impact of Gen AI in banking

The Bangko Sentral ng Pilipinas BSP) is studying the impact of generative artificial intelligence AI) in the banking industry as it seeks to implement some guardrails” mitigate potential risks.

- KEISHA TA-ASAN

BSP Governor Eli Remolona Jr. said the central bank is trying to understand generative AI, as banks have inevitably begun exploring programs such as ChatGPT and other forms of machine learning.

"The issue here is what guardrails we can introduce to the use of generative AI. In other words, what safety features we can introduce," Remolona told reporters.

"If you use it for different analyses, there's a tendency for what we call herding.' They tend to give the same answers for some of the different questions. Herding is something that is a possible source of systemic risk," he said.

Generative AI could create new and realistic content, such as text, images, videos, or other data, using generative models. These models were trained on large amounts of data and generate new outputs based on the data they have learned from.