The Central Bank of Kenya (CBK) has cautioned financial institutions against rushing to adopt artificial intelligence (AI) without addressing ethical, legal, and operational risks that could undermine consumer trust and the stability of the banking sector.
In its latest report on the Bank Annual Report 2024, CBK noted that the rapid growth of AI tools in recent years has brought significant opportunities for the banking industry, including faster decision-making, fraud detection, and personalised services.
However, it warned that these technologies also carry inherent risks if not deployed fairly, transparently, and responsibly. "In recent years, the field of AI has witnessed rapid advancements, and many applications have emerged in the banking sector.
As a result, it has become increasingly important to consider the consequences that AI systems have and how they can be used fairly, transparently, and appropriately," CBK stated.
