ANALYSIS: New Threats, Same Rules for Finance Generative AI

The potential for generative artificial intelligence—AI that responds to input by creating something new—to further automate customer service has been embraced by the financial sector. The use of AI in consumer financial customer service “chatbots” is already significant enough that the Consumer Financial Protection Bureau released a report in June on potential risks to consumers.

With new technology comes new risk. An article in MIT Technology Review described large language model (LLM) AI chatbots as “a security disaster.” This characterization is sensational, but generative AI does create novel cybersecurity risks and exacerbates existing risks. General counsel and compliance ...