US Flags "Significant" Data Gap As Bank Deploy AI In Fraud Prevention

While big banks have more internal data to develop AI models to prevent fraud, this is not the case for smaller ones, the Treasury said.

The US financial sector faces a "significant" data gap between big and small banks as they deploy AI to fight fraud, the Treasury Department said Wednesday, noting that smaller institutions are disadvantaged.

While big banks have more internal data to develop AI models to prevent fraud, this is not the case for smaller ones, the Treasury said.

There is a need to narrow this divide, the Treasury said, pointing out there is "insufficient data sharing among firms."