Overcoming AI Hallucinations: Truist’s Chandra Kapireddy

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Apr 15, 2025

Chandra Kapireddy, head of generative AI and analytics at Truist, brings over 27 years of experience in the financial sector. He discusses the transformative impact of generative AI tools on banking, highlighting both their potential and the challenges they create in model risk management. Kapireddy emphasizes the necessity of human oversight to prevent issues like AI hallucinations and inaccuracies. He also shares insights on effective employee training and the importance of governance in integrating AI technologies into banking operations.

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INSIGHT

GenAI's Impact on AI Strategy

Generative AI (GenAI) has broadened AI's reach, increasing awareness among those less familiar with NLP.
While traditional AI strategies remain relevant, GenAI's versatility introduces new validation and reliability challenges.

INSIGHT

Complementary AI Approaches

Traditional and generative AI are complementary, each having strengths and weaknesses regarding uncertainty and explainability.
Use cases exist for both, with traditional AI excelling in specific, high-stakes decisions requiring explainability.

ADVICE

Responsible AI Implementation

Implement a responsible AI approach encompassing privacy, explainability, transparency, accountability, safety, and security.
Codify these dimensions into a policy, translate them into processes, and incorporate them into every stage of the AI lifecycle.

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In today’s episode, Chandra Kapireddy, head of generative AI, machine learning, and analytics at Truist, delves into the evolving landscape of AI with a particular focus on how GenAI tools reshape the way Truist and similar organizations must navigate model risk management and regulations. GenAI is more versatile than traditional AI, he notes, yet its flexibility introduces new challenges around ensuring model reliability, validating outputs, and making sure that AI-driven decisions don’t lead to unfair or opaque outcomes.

Chandra’s responsible AI approach at Truist is focused on risk mitigation while emphasizing the importance of human oversight in high-stakes decision-making. He points out that while GenAI can vastly improve productivity by handling repetitive or analysis-heavy tasks, it’s essential to properly train employees in order to use the tools effectively and not over-rely on their outputs, especially given their tendency to hallucinate or produce inaccurate results. Read the episode transcript here.

Guest bio

Chandra Kapireddy is head of generative AI, machine learning, and analytics, at Truist. He brings over 27 years of experience building and leading world-class data, analytics, and artificial intelligence teams to the financial services firm. Kapireddy has held key leadership positions at some of the industry’s leading companies, including Capital One, Wells Fargo, Bank of America, Oracle, and Amazon Web Services. Most recently, he served as managing director and head of AI/ML products for JPMorgan Chase, where he served on the firm’s AI Executive Council, which influences its strategy, products, controls, and governance.

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