Regional Banking’s Massive Hidden AI Footprint

This episode outlines a governance framework designed to help regional banks manage the growing complexities of artificial intelligence and regulatory compliance. It details a survey-based architecture for discovering and categorizing various technologies, including shadow AI, vendor-embedded models, and autonomous agents. The framework is built upon established model risk management principles, such as SR 11-7, to ensure that every automated decision is transparent and defensible. By focusing on evidence-based oversight, the document provides a roadmap for institutions to transition from static checklists to real-time telemetry and audit readiness. Ultimately, it emphasizes the necessity of human-in-the-loop controls and robust data security to mitigate the unique operational risks posed by an AI-driven ecosystem.