As generative artificial intelligence (AI) tools have recently taken center stage in the broader digital landscape, AI’s advancement is accelerating the pace of innovation in the financial services industry. The rise of AI-powered solutions, particularly machine learning (ML) technologies, continues to transform how financial institutions protect their data, innovate their solutions, and fortify their defenses against evolving fraud threats.
With AI playing a pivotal role in the future of cybersecurity solutions and policies, credit unions have an opportunity to uphold their commitment to security in this new era of digital innovation. Factoring AI into cybersecurity is more than just a technological choice; it’s a strategic imperative for credit unions.
AI Opportunities And Challenges
By taking advantage of AI tools, credit unions can uncover data-driven insights and process efficiencies while tapping into enhanced fraud protection and predictive analytics capabilities. When it comes to preventing fraud loss, AI-powered ML solutions can continuously analyze vast datasets, identifying deviations and anomalies that human oversight might miss.
The efficacy of these technologies is underscored by PYMNTS.com’ research, which found firms using proactive and automated solutions, such as those powered by AI and ML, reduce their share of lost annual sales to 2.3% compared to a 4.5% loss among firms relying on legacy reactive and manual digital identity verification solutions for fraud detection. Whether it’s identifying suspicious patterns, predicting potential vulnerabilities or proactively countering cyberattacks, AI can be a valuable ally in safeguarding credit unions and their members from fraud risks.
However, AI comes with limitations — which might not be surprising to those who have experienced factual inaccuracies and a lack of contextual knowledge when using generative AI tools like ChatGPT. One significant internal risk for credit unions is over-reliance on AI for quick fixes without proper consideration, potentially exposing vulnerabilities. The accuracy of AI insights is directly linked to the quality and potential biases of training data. Moreover, maintaining robust data curation and training processes is crucial. Although AI-driven tools offer enhanced fraud detection and analytical capabilities, credit unions must incorporate human oversight and vetting for critical strategic decisions to ensure the right balance of AI and human judgment.
The Role Of Governance
As the financial services industry increasingly adopts AI, credit unions should proactively establish guardrails prioritizing data privacy, especially around sensitive member information, as well as the integrity of strategic internal decision-making.
Creating well-defined AI governance policies is essential for credit unions to harness the full potential of AI while mitigating risks. Such policies should include mechanisms to ensure data accuracy, accountability, and adherence to ethical principles. AI-generated results must be fully vetted for accuracy, and senior management should be involved in critical decision-making processes that involve AI-driven insights. Additionally, any externally used AI results should come with disclaimers to maintain transparency and member trust.
The AI Outlook For Credit Unions
Now is the time for credit unions to explore bolstering their internal policies and cybersecurity arsenals in light of AI-powered innovations. As adoption accelerates and industry use cases evolve, credit unions must collectively engage in conversations about the benefits and risks of AI in the context of cybersecurity. AI is already defining a new chapter of the digital age — and embracing AI-driven innovations while investing in comprehensive governance will empower credit unions to stay ahead of the curve.
As the Chief Information Security Officer, David Bryant is responsible for the systems and processes that protect PSCU and member data. He leads the teams that implement and support information security technology and architecture as well as technology-focused compliance programs. David also develops information security strategy for PSCU to reduce and manage risk and integrate cyber protections into business functions. His teams publish and maintain all security policies, standards, and processes and measure the effectiveness of the programs on a regular basis.
David has worked in the information security space for more than 20 years in a variety of positions both in operations, strategy, and architecture for several large, multi-national companies in a variety of industries with a focus on financial services. He has certifications as a Certified Information Security System Professional (CISSP), Certified Pen Tester (CPT), and Certified Ethical Hacker (CEH) among others. David has spoken at several large information security events and participates in multiple industry security forums and advisory boards.
David attended State Technical Institute at Memphis and Tampa College with majors in Electronics Technology and Information Systems. He currently resides in Riverview, FL.
