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Shadow AI Is Outpacing Governance in Financial Services
Shadow artificial intelligence (AI) applications are proliferating in financial services faster than oversight and governance structures can address them. The article discusses risks associated with unmanaged AI use, the counterproductive nature of blanket AI restrictions, and approaches to developing effective governance policies.
Why it matters: Financial services practitioners need to understand how uncontrolled AI adoption creates compliance, security, and operational risk, and what policy frameworks can bring shadow AI into manageable scope.
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- First seen by Cybersecurity Tracker