Charles Nerko, team leader for data security litigation in Barclay Damon’s Data Security & Technology Practice Area, was featured in The Fintech Times article “As AI Grows, So Do Its Challenges: Industry Reveals Technology’s Biggest Hurdles.” The article explores how the rapid integration of artificial intelligence (AI) into the fintech industry has brought significant challenges that organizations must address to harness AI’s full potential.
A primary concern is the presence of data silos within companies, which impede the continuous data flow essential for effective AI systems. Newer organizations often have an advantage, as they typically possess modern tech infrastructures with fewer legacy issues, facilitating smoother AI integration. The article highlights another critical issue: the need for transparent and explainable AI models.
In the financial sector, where trust and accountability are paramount, it’s essential for AI systems to provide clear rationales for their decisions to maintain user confidence and meet regulatory standards. Charles said, “Keeping pace with evolving laws is another challenge. AI regulations are nascent, with a growing, fragmented patchwork of federal, state, and industry-specific rules. Staying ahead of new regulations and following industry best practices are necessary to avoid regulatory scrutiny, litigation, and reputational damage.”
Furthermore, as cyber threats and fraud tactics evolve, fintech firms must remain vigilant by continuously updating and retraining their AI models to stay ahead of malicious actors. This ongoing maintenance is crucial to maintaining the integrity of AI-driven systems in the financial landscape.
Click here to read the full article.