FICO Wins Innovators 2023 Award from Global Finance for Blockchain in AI Model Governance
Blockchain for AI Model Governance tracks development, operationalization and monitoring of machine learning models to enforce Responsible AI practices
BOZEMAN, Mont.–(BUSINESS WIRE)–FICO has been named one of The Innovators 2023 for its use of blockchain to manage and monitor AI development. The 11th annual awards from Global Finance honor the world’s most innovative banks, most innovative fintechs, and the greatest financial innovations of the past year, as determined by a team of Global Finance editors and researchers.
More information: http://www.gfmag.com/magazine/june-2023/innovators-2023-global-winners
Developed and patented by FICO’s AI Innovation and Development team, Blockchain for AI Model Governance uses an immutable blockchain ledger that tracks end-to-end provenance of the development, operationalization and monitoring of ML models. The technology enforces the use of a corporate-wide responsible AI model development standard by organizations, and demonstrates adherence to the standard with specific requirements, people, results, testing, approvals and revisions. These are all tracked to an immutable blockchain to solidly demonstrate compliance with model development standards, compliance testing, and responsible AI. The AI model governance blockchain enables auditable AI requirements to support governance, regulators, monitoring, and remedy of production issues. This technology is used across FICO’s analytics teams, and is being made broadly available to FICO clients via FICO® Platform.
“This innovation was inspired by a need to ensure that data scientists and their corresponding organizations follow the defined responsible AI development standard supporting robust AI, interpretable AI, ethical AI, and auditable AI standards,” said Dr. Scott Zoldi, chief analytics officer at FICO and co-author of the patent. “This is used during the AI model development process – not a post-hoc process – and the AI model governance blockchain provides the essential metrics and data to meet operationalization standards for compliance, governance, and production monitoring for responsible AI usage.”
FICO’s third annual State of Responsible Artificial Intelligence (AI) in Financial Services report, developed in collaboration with market intelligence firm Corinium, showed that while 52% of respondents say that demand for AI products and tools is on the rise, the vast majority (71%) have not implemented ethical and responsible AI in their core strategies. 43% of respondents said they struggle with Responsible AI governance structures to meet regulatory requirements.
“Regulatory challenges are certain to come, given the plans for an EU AI Act, as well as increasing possibilities of regulation in the US and other countries,” said Zoldi. “Businesses developing AI today need to get ahead of regulation by creating corporate standards for responsible AI development. They need to know how their models make decisions, what data goes into the models, what latent features the model is leveraging and show proof of compliance and governance testing. Blockchain enables you to capture all of this in an immutable record and is essential for auditable AI practices.”
In deciding the award for FICO, Global Finance also noted the extensive number of patents granted to FICO for AI-related innovations. FICO was recently granted 9 patents related to digital decisioning in the areas of fraud, AI and machine learning technology. To date, FICO’s patent portfolio consists of 217 active patents, with an additional 72 patent applications filed and pending.
FICO’s use of blockchain for AI development and governance also received a “Highly Commended” status in the Financial Services Forum Awards 2023 in two categories: Best Innovation in Use of Technology and Most Innovative Company of the Year.
In May, FICO unveiled 19 major enhancements to its industry-leading FICO® Platform, the most powerful and proven foundation for applied intelligence. FICO Platform powers enterprises to drive the most critical, strategic business outcomes across the customer lifecycle. FICO Platform received placement as a leader among top providers in “The Forrester Wave™: AI Decisioning Platforms, Q2 2023” report.
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in nearly 120 countries do everything from protecting 2.6 billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and other countries, improving risk management, credit access and transparency. Learn more at www.fico.com.
FICO is a registered trademark of Fair Isaac Corporation in the U.S. and other countries.
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