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AI in Australian Banking Blog

Stay updated with the latest insights, regulatory developments, and practical guidance for implementing AI.

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Our Approach to AI in Banking: Learn about our methodology, principles, and collaborative approach to implementing AI solutions in the Australian banking sector. Discover how we partner with financial institutions to ensure compliant, secure, and effective AI deployments.Explore our approach →

Recent Posts

January 2025

Published: January 20, 2025As Australian banks continue to integrate AI systems, understanding CPS 230 compliance requirements becomes crucial. This comprehensive guide covers:
  • Operational risk management for AI systems
  • Third-party risk assessment frameworks
  • Business continuity planning with AI dependencies
  • Incident response procedures for AI-related failures
Key takeaways:
  • AI systems must be included in critical operations mapping
  • Regular stress testing of AI models is now mandatory
  • Documentation requirements have expanded to include AI decision-making processes
Read full article →
Published: January 15, 2025Business Continuity Planning (BCP) meetings generate vast amounts of sensitive data. Our latest analysis explores how AI can enhance meeting intelligence while maintaining strict privacy controls:
  • Automated risk identification from meeting transcripts
  • Real-time compliance monitoring during discussions
  • Privacy-preserving summarization techniques
  • Integration with existing BCP frameworks
Featured capabilities:
  • Speaker diarization with privacy masking
  • Automated action item extraction
  • Risk sentiment analysis
  • Regulatory keyword detection
Explore BCP Intelligence →
Published: January 10, 2025Retrieval-Augmented Generation (RAG) systems are revolutionizing how banks handle regulatory queries. This technical deep-dive covers:
  • Architecture patterns for regulatory document ingestion
  • Vector database optimization for Australian financial regulations
  • Prompt engineering for compliance-specific responses
  • Evaluation frameworks for regulatory accuracy
Technical highlights:
  • Multi-modal document processing (PDF, HTML, structured data)
  • Citation tracking for audit trails
  • Confidence scoring for regulatory interpretations
  • Real-time regulation updates integration
View technical implementation →

Regulatory Updates

APRA Updates - January 2025Recent guidance from APRA regarding AI system governance and risk management:
  • Updated prudential standards for AI model validation
  • Enhanced reporting requirements for automated decision systems
  • New guidelines for third-party AI vendor management

Best Practices

Establishing robust governance for AI systems in bankingKey components:
  • Model risk management lifecycle
  • Validation and testing protocols
  • Performance monitoring and alerting
  • Explainability and audit requirements
Protecting customer data while leveraging AI capabilitiesEssential practices:
  • Privacy-by-design implementation
  • Data minimization strategies
  • Consent management for AI processing
  • Cross-border data transfer compliance
Managing third-party AI vendors and servicesCritical considerations:
  • Due diligence frameworks for AI vendors
  • Contractual requirements for AI services
  • Ongoing monitoring and assessment
  • Exit strategy planning

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Categories

  • Regulatory Compliance
  • Technical Implementation
  • Risk Management
  • Industry Insights
Articles focused on APRA, ASIC, and other regulatory requirements for AI in banking

Disclaimer: This blog by Kohima AI provides general guidance and insights for educational purposes. Always consult with your legal and compliance teams before implementing AI systems in regulated environments.
Last updated: August 18, 2025
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