Wall Street firms know the pains of having to satisfy regulators, and with advancements in artificial intelligence, there's a whole new level of scrutiny and complexity.
It involves quality-and-assurance teams who test, verify, validate, and challenge the AI models before they go into production and report issues back to the engineering team to fix.
In some cases, banks' technology teams are spending at least half their time documenting models for compliance, Jonas Jacobi, cofounder of fintech startup ValidMind, told Business Insider.
AI models are often compared to a "black box" because it can be difficult to understand their decision-making or how the models arrive at their results.
With the new injection of capital, ValidMind will build more features, like one aimed at automating the risk management of third-party vendor solutions.
Persons:
Banks, Jonas Jacobi, Jacobi, ValidMind, Steve Cohen's, Mehdi Esmail, Andres Rodriguez
Organizations:
Business, Point72 Ventures, American Express, Third Prime Ventures, York Life, Jacobi, Technologists
Locations:
Palo Alto, Calif, Wall, ValidMind