The US Treasury has warned that smaller financial institutions risk getting left behind when developing in-house AI systems as they lack the internal data sources required to train large models.

According to a new report from the US Treasury examining the role of AI in cybersecurity based on in-depth interviews with 42 financial services sector and technology related companies

The report found that there is not enough data sharing amongst companies to sufficiently prevent fraud.

Larger firms have an advantage as they have more historical data and may have already migrated to the cloud. This enables them to leverage AI systems in a safe and secure manner.

The report also highlighted the skills gap and said that the rapid pace of AI development had exposed a talent gap. Additionally, there is a technical competency gap when managing AI risks in areas such as legal and compliance.

“Artificial intelligence is redefining cybersecurity and fraud in the financial services sector, and the Biden Administration is committed to working with financial institutions to utilise emerging technologies while safeguarding against threats to operational resiliency and financial stability,” said Nellie Liang, under secretary for domestic finance.

“Treasury’s AI report builds on our successful public-private partnership for secure cloud adoption and lays out a clear vision for how financial institutions can safely map out their business lines and disrupt rapidly evolving AI-driven fraud.”

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