|
|

[Data Governance #1]
How Gen AI Enhances Data Governance in the Financial Industry

David Chung, Ph.D.
Associate Partner
Synpulse Management Consulting Ltd.
The importance of data governance for financial institutions has long been self-evident. However, the prioritization of resources allocated to data governance has often remained relatively low. In recent years, with the rise of data science, AI, and even Generative AI (Gen AI), the importance of data governance has been increasingly—albeit passively—highlighted due to technological advancements. This article series will focus on data governance, introducing and exploring it from various perspectives.

This article will discuss how Gen AI enhances data governance in the financial industry.
Today, Gen AI can not only improve data quality and consistency but also ensure accuracy and reliability through automated data quality checks and cleaning processes. It also enhances transparency and accountability within the data management framework, enabling financial institutions to better track and manage data sources, thereby supporting more precise decision-making and business growth.

Here are three fundamental aspects in which Gen AI can enhance data governance:
  1. Establishing and Enhancing Metadata
    In our experience, the lack of and inaccuracy in metadata are the most common causes of poor data quality. The tedious process of filling in metadata often requires significant manual effort and lacks consistent standards, which is a major obstacle. Gen AI can assist in this regard.
  1. Monitoring, Comparing, and Cleaning Data Quality
    Real-time detection of anomalies, errors, and inconsistencies in data during system operations is a practical way to improve data governance in daily operations. Gen AI can scan large datasets, identify missing values, formatting errors, and data anomalies, and issue timely alerts for subsequent processing.
  1. Creating Data Knowledge Topology
    The scope of knowledge topology can be broad, but the lack of data lineage alone is a common pain point. Using Gen AI to automatically extract data relationships from various documents, files, system configuration files, and even programming codes within the organization to build the foundation of a knowledge topology is another scenario where Gen AI can enhance data governance.
This article has been authorized by Dr. David Chung. Reproduction without permission is prohibited.
Original source:
https://www.linkedin.com/posts/davidchungtw_jfchavndvioz-nrdjgjkppkzk-oxconmlkhkzk-activity-7222143983185973249-qvrn?utm_source=share&utm_medium=member_desktop

Scroll Top