The compliance deadline banks aren't watching for

Short summary

Most financial institutions have deployed AI systems but lack formal governance oversight—a risk called 'Shadow AI.' Regulators are signaling clear expectations (OSFI E-23, SR 11-7), yet few institutions track what's actually running inside their organizations. The compliance window is closing: institutions now need structured governance frameworks that align with regulatory requirements and prove their AI is safe to scale.

• •Shadow AI: AI models deployed without formal governance oversight in most financial institutions
• •Regulatory signals: OSFI E-23 and SR 11-7 set expectations that most banks aren't currently meeting
• •Action required: Build governance frameworks now to prove AI safety and compliance readiness

Generated with AI, which can make mistakes.