Ethics, Risk, and Governance

Expanded Model Risk Management (MRM)

MRM must evolve from a banking-specific compliance task to a strategic organizational function.

New Categories for AI

• Alignment AI: Tools that standardize and measure.
• Investigative AI: Tools for exploration and understanding.
• Influential AI: Tools for real-time interaction and decision support.

Documentation Requirements: MRM must document the "Data Scope & Freshness," "Expected Decision Patterns," "Audience Exposure," and "Expected Lifespan" of every model.

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Principles of Ethical Influence

To prevent "dark patterns" and manipulation, AI influence must adhere to strict ethical guidelines.

1. Transparency: Users must know when AI is shaping their experience.
2. User Control: Users must have the ability to opt-out of recommendations.
3. Human Oversight: A human must continuously monitor AI decision-making to ensure alignment with human values.