The compliance deadline banks aren't watching for

Financial institutions are being urged to tighten AI governance as regulators raise expectations for oversight and auditability.

The article warns that many banks have already deployed AI tools without formal controls, including untracked “shadow AI.”

Stronger governance frameworks are needed to make AI use safe to scale and compliant with guidance such as OSFI E-23 and SR 11-7.

The risk is growing compliance and model-governance exposure as the Federal Reserve and other regulators sharpen scrutiny.