Finance firms face surging AI risks as conduct incidents average USD 14 million

A new report by RepRisk and Oxford Economics reveals that financial institutions face annual cost exposures of $28 million to $43 million from business conduct and reputational risks. While only 16% of executives historically flagged AI-related conduct risks as material, 56% now expect them to become a top threat as AI is integrated into core workflows like compliance and transaction due diligence. The findings emphasize the importance of human-AI hybrid oversight, which is trusted by 73% of executives to prevent costly data errors and model hallucinations.