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Goldman Sachs CIO on How the Bank Is Actually Using AI

Odd Lots

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Regulation as a Shield for Innovation

Operating within a regulated framework enables organizations like Goldman Sachs to address complexities associated with AI usage. Regulation serves as a guiding force, prompting thorough governance around model usage and case implementation. The established model risk framework, which governs automated decision-making processes such as pricing and risk calculations, is adapted to encompass AI applications. This ensures that AI initiatives are subject to robust controls and validation processes, thus fostering a responsible and compliant approach to innovation in a complex landscape.

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