10 commandments for successfully integrating AI in financial institutions – Fin&Tonic takeaways

At our latest Fin&Tonic event, we invited Mieke De Ketelaere, a leading AI expert and author, who delivered an inspiring keynote that encouraged our attendees to look beyond the hype surrounding AI. She shared practical insights and introduced her 10 commandments, a set of guiding principles to help financial institutions leverage AI effectively and responsibly.

The event was an opportunity to reflect on the role AI plays in transforming the financial sector. From improving customer experiences to optimising operations and managing risks, AI offers immense possibilities. But with these opportunities come important questions. How do we balance innovation with responsibility and regulations? How can we make sure AI aligns with business goals and ethical considerations? And how does the use of AI impact our planet?

Mieke’s framework addresses these questions, offering a clear path forward.

Commandment 1: Put planet and people on par with profit

Mieke’s first commandment challenges financial institutions to look beyond just profits. AI initiatives should also consider their impact on the planet and society. For example, did you know the carbon footprint of AI is quite significant? Each AI query can produce up to 11g of CO2. By adopting more sustainable practices and considering the environmental cost of AI technologies, companies can align AI projects with broader sustainability goals. So, make sure you get the balance right.

Commandment 2: Understand AI’s limits. It’s just advanced statistics

One common misconception is that AI can “think” like humans. Mieke emphasised that AI models, such as ChatGPT, are actually advanced statistical tools. They actually identify patterns in large datasets, but don’t truly ‘understand’ the world. Financial institutions must be aware of AI’s limitations and ensure human oversight when using AI for important decision-making. It’s great that you can for example automate your claims processing with AI, but it’s important to remember that AI can also carry biases.

Commandment 3: Stay critical and aware of context

While AI can be inspiring, it’s crucial to stay critical of the results it produces. AI lacks common sense and understanding of the broader context. Mieke warns that organisations should regularly evaluate AI outcomes, especially in sensitive areas like compliance, to avoid errors that arise from context misinterpretation. You can’t run from Brussels to New York, though AI thinks differently.

Commandment 4: Demand transparency from AI systems

Transparency in AI is essential for building trust. Financial institutions should demand transparency in how AI systems are developed and how they function. Mieke encourages the use of “system cards” which are clear documentation explaining how an AI model works, what data it uses, and its limitations. This transparency helps ensure responsible AI use and compliance with industry regulations.

Commandment 5: Prioritise hybrid AI solutions that include reasoning

More data doesn’t automatically make AI smarter. Mieke stressed the importance of hybrid AI solutions that incorporate reasoning capabilities. In financial services, hybrid AI can combine data-driven insights with human logic, improving decision-making processes in areas such as fraud detection and customer service. And don’t forget about the human oversight.

There is no doubt: AI is there to stay. The reality is that being unprepared in a world full of AI is a choice, but not a very good one. The proven benefits of AI come when we see it as a inspiring technology to extend our human intelligence to help us out in a world full of uncertainties where every minute counts. – Mieke De Ketelaere

Commandment 6: Acknowledge that consumers form relationships with technology

In today’s ‘intimacy economy,’ customers form emotional connections with the technology they use. Whether it’s through AI-powered chatbots or virtual assistants, financial institutions need to understand how these relationships can influence behaviour. Mieke advises setting ethical boundaries and creating guidelines for how AI interacts with customers to maintain trust and protect privacy.

Commandment 7: Avoid AI for AI’s sake, start with a business challenge

Too many organisations jump on the AI bandwagon without a clear objective. Mieke cautions against starting AI projects simply to stay trendy. Instead, she recommends that financial institutions begin with a well-defined business challenge, whether it’s reducing costs, improving customer service, or increasing revenue. Once the objective is clear, AI can be applied to achieve specific outcomes.

Commandment 8: Focus on the integrated process, not isolated tasks

AI works best when it’s integrated across the entire process rather than solving isolated tasks. Financial institutions should take a holistic approach when implementing AI, ensuring that it enhances workflows across departments rather than just one area. This integrated approach will help maximise the value AI delivers.

Commandment 9: Take responsibility today, don’t wait for the EU AI Act

With regulatory frameworks like the EU AI Act on the horizon, many institutions are waiting for compliance guidelines. Mieke stresses that organisations must take responsibility now, particularly around issues like data privacy and bias. By adopting a proactive, risk-based approach, financial institutions can stay ahead of regulations and avoid potential pitfalls.

Commandment 10: Appoint human AI translators

One of Mieke’s recommendations is to appoint AI translators. These individuals, report directly to the CEO, and should act as a bridge between technical AI systems and business leadership. They ensure that AI is implemented in ways that align with business strategy, while also translating complex technical insights into actionable business decisions.

Conclusion

AI presents tremendous opportunities for the financial sector, offering ways to improve efficiency, reduce costs, and enhance customer service. However, success requires a strategic and thoughtful approach.

Projective Group continues to support the financial industry with pragmatic solutions that address both operational and environmental challenges around amongst others, AI. Find all our solutions amongst others our ESG expertise.

If you’re curious to learn more about AI and its impact, Mieke De Ketelaere’s book ‘Wanted, Human-AI Translators‘ is a great place to start. In a clear and accessible way, she explains what AI can and cannot do, its opportunities, and its risks. While it’s not a must, it’s a recommended read for anyone wanting to understand AI better.

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