Managing financial services model risk in an age of big data and AI

Any financial services firm using AI must revisit its approach to model risk management. The reason is that AI models are evolving faster than the rules-based models that were standard previously. If AI models perform inadequately, major operational losses can grow quickly. Watson OpenScale helps organizations validate and monitor AI models to enhance compliance with regulations, provide fair and explainable outcomes, and mitigate business risk. To date, Watson OpenScale has focused on AI models in production. Now, its upcoming model risk management capabilities address the challenges that financial services firms need to solve.