Treat AI models as would-be hackers, says quant
Risk Live: Models capable of “strategic deception” require different risk management, says former Risk.net quant of the year
Banks should keep watch over frontier artificial intelligence models as much as they look out for rogue traders, fraudsters and hackers, a leading quant says.
Alexander Sokol, founder of risk management technology company CompatibL, said agentic AI presents a new type of risk in which the adversary – though a computer model – hides its behaviour, lies and disrupts efforts to police it. Sokol was speaking at Risk Live Europe in London on June 30.
The new “adversarial model risk” is starkly
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