AI in regulated industries: BofA and S&P on the huge gains to be had, and the risks of rushing in

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Bank of America’s chief technology and information officer said one of the most common AI mistakes is reaching for it first. His bank also plans to double its AI budget next year. “One of the biggest mistakes we see us and others doing is rush to AI as a solution,” Hari Gopalkrishnan said at Fortune‘s AIQ Summit in New York, “when deterministic models do a plenty good job.” Gopalkrishnan appeared with Sally Moore, S&P Global’s chief client officer and co-head of Kensho Data & Platforms. Fortune Editorial Director Andrew Nusca moderated. Bank of America: simple tools first Gopalkrishnan said the bank starts with what clients need and a “process inventory” of the steps behind their requests. It often decides against AI — “plenty of times,” he said. A mobile app or a real-time decision rule can be the better answer. Every AI project also goes through a review that covers 16 “pillars” of risk, including privacy, bias, workforce impact and intellectual property. “We’re not going to…

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