With the emergence of generative AI in the past 18 months adding a fresh perspective to the financial landscape, financial institutions unknowingly leverage AI daily without realizing it. From fraud detection systems to customer service chatbots, AI-powered tools quietly optimize and strengthen our operations. Misperceptions around its usage underscore an urgent necessity: Updating policies to accurately reflect AI's omnipresence in the operational framework of institutions.

While AI isn't a new phenomenon and has long supported sectors like cybersecurity and fraud prevention, generative AI represents a recent breakthrough, utilizing sophisticated algorithms to generate unique content, make decisions and revolutionize customer interactions. While this advancement holds great promise, it also introduces various opportunities and challenges.