Bank outlines approach to AI governance, applications and risk management
Commonwealth Bank of Australia has released a detailed account of how it develops and governs artificial intelligence (AI) across the group, becoming the first major domestic lender to set out its AI practices at organisation level.
The report describes the bank’s framework for ideation, deployment and oversight of AI, with a focus on responsible use and risk controls.
According to the report, AI is now embedded across several functions, including fraud and scam detection, cyber security operations, customer engagement and the monitoring of abusive or harmful content in transaction descriptions. These tools sit alongside broader risk management processes and internal policies.
The publication comes as AI investment accelerates across the economy. Industry forecasts cited by the bank suggest AI could add between $45 billion and $115 billion a year to Australia’s GDP by 2030, underlining why financial institutions, including mortgage lenders, are formalising AI strategies and controls.
The Federal Government’s National AI Plan has also emphasised the role of business in adopting AI responsibly, placing the onus on banks and other large institutions to demonstrate how they govern emerging technologies in line with regulatory expectations.
“We’ve heard that stakeholders want to better understand how AI is being used across the Bank and our approach to managing the risks associated with its adoption,” said Matt Comyn (pictured right), chief executive of Commonwealth Bank. “This report outlines our progress and the safeguards we have in place to support responsible use.”
“To realise the full potential of AI, we must work together to build capability, foster innovation and support responsible adoption. We aim to share our knowledge as we navigate this rapidly evolving landscape.”
Alex Matthews, executive general manager and lead on the report, said the bank sees material upside in AI but remains focused on the risk dimension.
“As Australia’s largest bank, trust is fundamental to how we use AI,” said Alex Matthews, executive general manager at Commonwealth Bank. “Our approach is focused on our risk management foundations and guided by our AI principles.”
Matthews said the technology is already influencing how the bank combats financial crime and personalises services. “Banking technology has evolved significantly in the past 30 years, and we are using AI to help reduce scams and fraud, protect against phishing, and deliver more tailored and relevant experiences for our customers,” he said.
“We recognise the importance of collaboration with government, universities and business to foster innovation, build capability and support the responsible adoption of AI. We will continue to refine our approach as the technology evolves.”
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