Evident finds banks strengthening AI controls, but only 12 disclose returns

Responsible AI commitments are becoming standard at major banks; disclosed financial returns are not. Evident’s annual AI Index, published October 6, assessed 50 large global banks. All but one reported responsible AI principles, but only 12 reported return on investment from AI projects. JPMorgan Chase led the ranking for AI maturity.

From principles to operating controls

The spread of formal commitments has been rapid: just 16 banks reported responsible AI principles in 2023. This year’s index also found more than two-thirds reporting detailed controls for AI systems. Those measures go beyond stating an intention to use the technology responsibly and address how systems operate.

• Input and output checks examine what an AI system receives and what it produces.
• Tool limits constrain which tools an AI system can use.
• Oversight after deployment keeps scrutiny in place once a system is live.

Banks are adding people to support that work. AI governance talent across the 50 banks grew 33% year over year, Evident found. Alexandra Mousavizadeh, Evident’s co-founder and co-CEO, told CIO Dive that leading banks build standardized safeguards into their shared AI infrastructure.

Errors can therefore translate directly into financial loss, customer harm, regulatory breaches or systemic and reputational risk

Alexandra Mousavizadeh, Evident co-founder and co-CEO, speaking to CIO Dive

A ranking with more emphasis on delivery

The index uses publicly available data to assess 50 of the largest banks across North America, Europe and Asia-Pacific. Its four main areas are talent, innovation, leadership and transparency. BBVA’s account of the methodology says this year’s assessment added criteria for AI deployment, adoption, use, impact and return on investment.

Capital One followed JPMorgan Chase in the overall ranking, with Royal Bank of Canada and CommBank next. BBVA said it ranked first among eurozone banks and third among European banks. It also placed fourth in leadership, a category that considers senior management involvement and reported results from AI initiatives.

Use cases outnumber disclosures of returns

The banks cited more than 1,100 AI use cases since 2021. Evident found that banks scaling AI were concentrating on embedding it deeper into workflows rather than pursuing universal adoption. Software implementation and advisory tools were among the uses banks reported as delivering value this year.

The number reporting return on investment rose from eight last year to 12. That is a measure of disclosure, not proof that the other banks’ projects failed to generate returns. Mousavizadeh said banks finding time savings tend to put that capacity toward clients, products and backlogs of work—not simply leave the saved time unused.