Bank CEOs’ AI Obsession Collides With Warning From Watchdogs (1)

As bank executives increasingly tout the promise of artificial intelligence to slim down workforces, regulators are warning them not to get carried away.

The European Banking Authority, the rulemaker for financial firms operating in the region, has been meeting with national authorities to ensure human bankers are providing adequate oversight of processes increasingly handled by AI, according to Ruta Merkeviciute, head of digital finance at the EBA.

The watchdog’s concerns extend to the kinds of repetitive tasks traditionally handled by bankers in middle and back office functions, she said.

For example, “if AI is being used for credit assessments, ...