AI Advances Bring New Tools and New Challenges to Risk Management

In a conversation at Risk Evolve, Ioan Nascu of Citi highlighted how AI is moving beyond theoretical promise and proving its value in practical applications. Risk managers, once burdened with administrative tasks and manual processes, are now leveraging AI to streamline assessments, analyze large data sets, and even generate reports.

Key advances include AI-powered behavioral profiling in fraud detection, enabling institutions to monitor user actions post-login and detect account compromises in real time.

Yet, scaling these innovations across a global organization like Citi presents challenges. Nashko emphasized the difficulty of balancing automation with the necessity of human oversight, particularly when expertise becomes a bottleneck.

Regulatory fragmentation also complicates implementation, as multinational firms navigate a maze of evolving, sometimes conflicting, requirements. Still, Nascu believes that with explainability and a risk-informed approach, AI can serve as a powerful tool—not just for efficiency, but for proactive, resilient governance.