As banks weigh artificial intelligence for their services, Central Bank of Ireland Governor Gabriel Makhlouf said directors need the expertise to assess its limits and keep responsibility for decisions clear.
Speaking at an Oct. 8 book launch in Dublin, Makhlouf said directors need enough knowledge to judge what AI can offer and where it may fall short. His remarks addressed the demands the technology places on bank oversight, alongside other risks boards already face.
Makhlouf identified cyber threats, interruptions to essential services and dependence on outside providers as governance concerns. He said boards should be prepared to challenge the direction management is taking.
Clearly defined individual roles can help people accept responsibility for decisions and flag concerns, he said. Makhlouf also urged greater clarity in regulation and fewer overlapping requirements.
The remarks came at the launch of The Evolution of Bank Governance in the EU. The book looks at the European Union’s Capital Requirements Directive through issues such as AI risk management, directors’ duties and remuneration. Changes made to the directive in 2024 cover supervisory powers, sanctions, non-EU bank branches and environmental, social and governance risks.
Makhlouf announced no policy change at the event.
