Financial institutions need to establish proactive internal control systems as artificial intelligence adoption becomes widespread in the sector, according to industry experts.
The analysis comes as the "Framework Act on AI Development and Trust Building" took effect this year. Financial authorities plan to release "AI Guidelines for the Financial Sector" as early as this month.
"AI is a 'black box' where we cannot know how results are generated, and there may be risks of information leakage during the process of handling large volumes of data," said Lee Jong-oh, Deputy Governor for Digital and Information Technology at the Financial Supervisory Service.
Lee made the remarks during a keynote speech at the 2nd Seoul Economic Daily Internal Control Policy Forum held at The Plaza Hotel in Jung-gu, Seoul on the 18th. The forum's theme was "Transformation of Internal Controls in the Financial Sector Following AI Adoption."
"AI has unique characteristics different from legacy IT systems, requiring risk management tailored to those features," Lee emphasized.
Some participants called for actively utilizing AI to enhance internal control systems. With financial institutions accelerating digital transformation, AI could be deployed to specialize data processing or prevent financial incidents before they occur, experts noted.
KB Financial Group Chairman Yang Jong-hee has ordered the application of AI to quantify and visualize compliance monitoring data.
