Commonwealth Bank Classifies AI As Material Risk

The Commonwealth Bank of Australia has classified artificial intelligence as a 'material risk type' under its risk management framework as it expands AI use, the bank says in a transparency report. It created a dedicated AI risk committee, placed board-level oversight with annual risk appetite statements, and uses AI to screen about 80 million events daily for fraud. The bank also runs guardrails-as-a-service for its Ceba chatbot, including RAG controls to prevent hallucinations.