Generative artificial intelligence is rapidly transforming financial operations and has shifted from being a technology trend to a critical controls and governance issue Across global financial firms GenAI is used to draft narratives summarize contracts prepare audit commentary and assist with budgeting and forecasts but the pace of adoption has often outstripped policies and risk frameworks This creates pressure on internal controls and accountability systems as outputs produced by AI can affect reporting accuracy and regulatory compliance Financial organisations must now focus on how to manage the use of GenAI to protect evidence confidentiality and ensure human oversight under established finance processes Without strong controls the use of AI can weaken governance structures create data privacy risks and blur accountability when outputs are accepted without proper verification
Experts recommend embedding controls by design into all GenAI deployments Finance teams are encouraged to establish clear policies on allowed uses require explicit human ownership of AI assisted outputs and restrict access to approved platforms only Regulators and auditors expect consistent standards for review approval and documentation to ensure AI contributions do not compromise compliance or operational integrity Many firms have moved beyond experimentation with GenAI but still lack robust frameworks to manage regulatory risk ethical considerations and explainability of outputs which are essential in regulated sectors Effective control frameworks also help align AI use with transparency accountability and risk mitigation requirements
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