Generative Artificial Intelligence in Banking – Risks and Challenges

Generative artificial intelligence has since 2022 risen to the top of the agenda of banking executives around the world. However, this rapid “embrace” of innovation comes with certain threats and challenges. This paper aims to outline all these risks while suggesting ways for successful implementation of Gen AI in the banking value chain. The research showed that there is no universal approach for banks to take advantage of the potential of this new technology. Instead, they must work out their own strategies for such implementation, taking into account many of the specifics of their organizational structure and applied business model.