AI Will Demand Greater Attention for Data Governance
Financial services increasingly rely on AI to drive innovation, but poor data quality can be a liability, leading to inaccurate insights and potential legal risks. Data governance, therefore, must be the foundation of an organization’s digital transformation.
“Data governance serves as the cornerstone for responsible, ethical, secure and effective data utilization within AI systems,” writes Wendi O’Neil, a data and analytics expert at CDW, in a blog post. “Safeguarding data quality, integrity and compliance significantly enhances AI models’ efficiency and precision.”
By establishing frameworks and guidelines around data’s access and use, organizations can ensure that the data used for AI models is accurate and AI’s predictions are dependable, leading to better decision-making, according to O’Neil.
An effective data strategy should start with a modern data platform that’s scalable and able to handle different kinds of data. Having data organized and well-governed enables teams to control access and keep pace with data regulations.
“A modern data platform helps organizations manage their data flexibly,” Rex Washburn, head of modern data platforms at CDW, tells BizTech. “As regulations change around data, governance and compliance, they’re able to comply with those regulations.”
DIG DEEPER: See how financial service organizations can build better data strategies.
Compliance and Cyber Resilience Will Take Center Stage
Security and compliance are far from new concepts in financial services, but with information residing in a continued sprawl of cloud environments, organizations are increasingly challenged to protect customers’ data privacy.
“Every business needs a robust security posture, but financial services companies operate in an environment where data confidentiality, integrity and availability are paramount,” writes David Sibley, a cybersecurity adviser at CDW, in a recent BizTech blog.
One solution to modern threats is security orchestration, automation and response, which uses AI to streamline incident management, Sibley writes.
For cloud environments, a cloud-native application protection platform is another solution, providing real-time threat detection, automated incident response, and comprehensive compliance auditing and management, writes Brett Shaw, senior manager of product marketing for cloud security at CrowdStrike.
As IT leaders become more confident and prepared in terms of cyber resiliency, experts say, they are also spending more on compliance measures, which should help financial organizations navigate the evolving world of cybersecurity regulations.
To stay on top of compliance, organizations should prioritize data governance, perform regular audits and continuous monitoring, leverage automation tools, and invest in encrypted software solutions.
UP NEXT: What is compliance management software?
