Generative artificial intelligence is ushering in major changes to work processes and transforming how organizations operate. For financial institutions, the opportunities include integrating generative AI into financial modelling, which opens up new possibilities for delivering productivity gains and building competitive advantage.
At PwC Canada, we understand the unique challenges and opportunities faced by financial institutions when integrating generative AI into quantitative modelling and can help them successfully and responsibly adopt this technology to drive efficiency, innovation and sustained business outcomes.
The opportunities for Canadian financial institutions
Generative AI has the potential to create significant productivity gains by bringing automation to tasks previously thought to require human involvement. The largest benefits are likely to come from integrating generative AI into roles mostly characterized by knowledge-work activities. Through our work with Canadian financial institutions, we’ve pinpointed several promising use cases to apply generative AI to quantitative modelling, including but not limited to:
reading new regulatory guidance and performing a gap analysis between these documents and current internal policies;
conducting literature reviews of potential approaches and research on industry practices;
proposing the most cost-efficient modelling approach based on business need;
generating documentation such as model operational manuals;
providing model monitoring results summaries and drafting model monitoring reports;
visualizing testing results in summary reports to facilitate model, variable and factor selection decisions; and
summarizing emails, meeting minutes and other forms of evidence.
Generative AI use cases will require a variety of technology solutions, each adapted to the data a financial institution needs and the process they fit into. Options for financial institutions include:
developing and training the organization’s own model to create tailored outputs that will reinforce competitive advantage;
using an off-the-shelf application developed by an external vendor; and
adopting an open-source foundational model to be fine-tuned using the organization’s internal data.
How we can help
Our subject matter experts bring deep knowledge of industry standards and best practices and can work closely with your teams to navigate the complexities involved and guide the development of the AI system. Key areas we can support you with include:
AI/machine learning model development and validation
Generative AI use cases and solution
AI/machine learning model life-cycle management
Contact us
Partner, Banking & Capital Markets Assurance Leader, Financial Risk Management Leader, PwC Canada
