As Artificial Intelligence (AI) adoption expands across financial services, insurers must evolve their model review approach to harness AI’s power and benefits while managing risks such as bias, explainability, and drift.
A robust framework for AI model reviewis critical for ensuring regulatory trust, audit readiness, risk mitigation, and customer fairness.
Existing Model Risk Management (MRM) frameworks should be adapted to reflect AI-specific complexities such as biases in data-driven decision-making, model adaptability, and potential black-box behaviours.
