Executive Summary:

In a rapidly digitalising world, staggering  technological advancements, particularly in artificial intelligence (AI), are taking centre stage  in driving innovation.

 The integration of AI within financial services  has revolutionised the industry but is not without  risks.

The financial sector, which has traditionally  excelled in validating conventional statistical methods, now faces the formidable task of  broadening and adapting existing validation  standards to encompass the complexities of  sophisticated AI algorithms.

This whitepaper underscores the potential  hazards associated with the deployment of AI in  financial services, emphasising the need for implementing a comprehensive AI validation  framework to effectively manage and mitigate  these risks.

In this paper, CRISIL also showcases its  cutting-edge and holistic framework. It is  meticulously crafted to instil unwavering trust in  AI systems, ensuring their operations are firmly anchored in safety, ethics and transparency.