Understanding the Evident AI Index: A Benchmark for Financial Institutions
The Evident AI Index Came Out of Nowhere.
Hello there AI enthusiast in Finance! (I'm assuming that's the case since you're here). Dan here, founder of gravityAI. If you’ve been wondering what the Evident AI Index is and why everyone’s talking about it, you’re in the right place. Let’s dive in, shall we?
My friends that are still in finance, keep mentioning that executives across the financial sector seriously care about their company's ranking in the Evident AI Index. Is this actually true? I've been out of that world directly for a while, but it seems like more of a vanity project more than anything else.
That said, there is value in trying to determine some of the core determinants of AI maturity across organizations, particularly around ethics and transparency. So let's take a quick look at this thing.
- What is the Evident AI Index? Picture this: the Evident AI Index is like the Hogwarts Sorting Hat for banks, but instead of sorting you into Gryffindor, it sorts your AI capabilities. It’s attempting to be the "global standard" for measuring AI maturity, evaluating banks on indicators like talent, innovation, leadership, and transparency. Basically, it tells you if your bank’s AI game is more Harry Potter or more Dudley Dursley.
- Why is it potentially Important? The Evident AI Index helps you see where you stand and where you need to improve. High rankings can boost your rep, attract investors, and make your competitors green with envy. It also gives a firm at least a sense of how they stack up in this AI arms race.
- How to Use the Index: Well, I think there are some better, more clear guidelines for AI maturity out there, especially around AI ethics like in this blog post, but the Evident AI index does show you some ways to refine your AI efforts, align with best practices, and set clear goals, by outlining the broad categories that execs need to think about - Transparency, talent, tech, etc... I suppose a company lower on the ranking and in their AI maturity could begin to get insights across these categories into their efforts.
- Potential Flaws in the Ranking Approach: Every good spell has its counterspell, and the Evident AI Index is no different. Here are a few hiccups:
- Self-Reported Data:
Some data might be self-reported by the banks. So, there’s a chance of some “my wand is bigger than your wand” exaggeration.
- Public Data Limitations:
The index relies on public data, which might miss out on secret potions brewing behind closed doors.
- Weighting of Indicators:
The weighting might not always reflect real-world impact. Maybe innovation should get a bit more Dobby-level love.
- Static Nature:
It’s updated annually, which means it might not capture those swift, game-changing moves in the AI arena. Think of it as a yearbook photo that misses your summer transformation.
One example that comes to mind is Barclays. They happen to be an investor in gravityAI, so I've gotten to see just how sophisticated their AI practice is. Barclays is ranked fairly low on the list, compared to where I would have them.
So there you have it, folks! The Evident AI Index is your possibly vanity, possibly actually helpful project magic mirror, showing where you shine and where you need a little extra AI love.
In our next post, we discuss how gravityAI can boost your ranking on the Evident AI Index.