{"id":6573,"date":"2024-03-28T14:39:10","date_gmt":"2024-03-28T06:39:10","guid":{"rendered":"https:\/\/www.1ai.net\/?p=6573"},"modified":"2024-03-28T14:39:10","modified_gmt":"2024-03-28T06:39:10","slug":"ai%e9%a3%8e%e9%99%a9%e7%ae%a1%e7%90%86%e5%88%9d%e5%88%9b%e5%85%ac%e5%8f%b8validmind%e7%ad%b9%e9%9b%86810%e4%b8%87%e7%be%8e%e5%85%83%ef%bc%8c%e5%8a%a9%e5%8a%9b%e9%93%b6%e8%a1%8c%e9%81%b5%e5%ae%88","status":"publish","type":"post","link":"https:\/\/www.1ai.net\/en\/6573.html","title":{"rendered":"AI risk management startup ValidMind raises $8.1 million to help banks comply with regulations"},"content":{"rendered":"

AI Risk Management for Financial InstitutionsStartups<\/a>ValidMind<\/a>Recently announced the completion of a seed round of financing of US$8.1 million. This round of financing was led by Point72Ventures and participated by several venture capital firms. Currently, the company's total financing amount has reached US$11.1 million.<\/p>\n

In the financial industry, banks are under pressure to expand their use of AI while ensuring that these technologies meet regulatory requirements. According to a report by the U.S. Consumer Financial Protection Bureau, banks using chatbots are at risk of providing inaccurate information to customers, thereby undermining consumer trust. In addition, new regulations such as the EU's AI Act and the proposed U.S. AI Bill of Rights are pushing the limits of current model risk management (MRM) processes and banks' traditional MRM systems.<\/p>\n

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Source: The image is generated by AI, and the image is authorized by Midjourney<\/p>\n

\u201cMRM teams at financial institutions are struggling to cope with the acceleration of business to deploy more AI solutions and the increased pressure from regulators to ensure compliance,\u201d Jonas Jacoby, CEO and co-founder of ValidMind, told VentureBeat.<\/p>\n

Jacoby explained that while existing regulations such as SR11-7 in the U.S. do not yet explicitly mention AI, they already cover AI models. \u201cBanks outside the U.S. will be one step ahead of other banks because they are already regulated,\u201d he said.<\/p>\n

However, most banks\u2019 model risk management processes involve a lot of manual work. \u201cWe know from talking to clients that manually updating these records accounts for about 30% of the model risk management team\u2019s workload,\u201d Jacoby said.<\/p>\n

That\u2019s where ValidMind comes in. The startup\u2019s platform automates parts of the process of writing, testing, and validating model documentation to meet regulatory requirements.<\/p>\n

\u201cIf you have a data scientist making $400,000 a year and they spend 50% writing documentation, if we can automate 80% of that, that\u2019s 16 hours saved per week,\u201d Jacoby said.<\/p>\n

He believes this will enable financial institutions to accelerate AI adoption without hindering innovation. \u201cI don\u2019t think regulation hinders innovation. It hinders it if you don\u2019t apply the proper tools,\u201d Jacoby commented.<\/p>\n

The new funding will support ValidMind\u2019s goal of building long-term partnerships while expanding its sales, marketing, and customer success teams.<\/p>\n

Jacoby said the successful funding round is a testament to investor interest in AI governance solutions. \u201cWe successfully secured a very highly subscribed funding round, which is very exciting for us as a company and team,\u201d he commented.<\/p>\n

While AI model risk management is still an emerging field, ValidMind\u2019s solution appears designed specifically for the growing intersection of AI innovation and regulation in the financial services industry.<\/p>\n

Jacoby envisions ValidMind eventually evolving into a \u201ccertification agency\u201d that provides on-demand validation services to banks\u2019 model risk managers.<\/p>\n

He explained ValidMind\u2019s long-term vision: \u201cHow do we help companies add more trust as they deploy AI, and that certainly includes what we\u2019re doing today in terms of providing a small-scale AI risk compliance in terms of regulatory requirements.\u201d<\/p>\n

As AI becomes increasingly critical in the financial services industry, ValidMind aims to ensure the integrity of the entire AI model lifecycle.<\/p>","protected":false},"excerpt":{"rendered":"

ValidMind, an AI risk management startup for financial institutions, recently announced the closing of an $8.1 million seed round. The round was led by Point72Ventures with participation from several venture capital firms. The company's total funding now stands at $11.1 million. In the financial industry, banks are under pressure to expand the use of AI while at the same time ensuring that these technologies meet regulatory requirements. According to a report from the U.S. Consumer Financial Protection Bureau, banks that use chatbots run the risk of providing inaccurate information to their customers, thereby undermining consumer trust. In addition, new regulations such as the European Union's AI Bill and the proposed U.S. AI Bill of Rights are pushing the limits of current model risk management (MRM) processes and banks' legacy MRM systems. Source Remarks:Image<\/p>","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[146],"tags":[1935,309],"collection":[],"class_list":["post-6573","post","type-post","status-publish","format-standard","hentry","category-news","tag-validmind","tag-309"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/posts\/6573","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/comments?post=6573"}],"version-history":[{"count":0,"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/posts\/6573\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/media?parent=6573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/categories?post=6573"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/tags?post=6573"},{"taxonomy":"collection","embeddable":true,"href":"https:\/\/www.1ai.net\/en\/wp-json\/wp\/v2\/collection?post=6573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}