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Critical Perspectives: March 2025 Highlights – AI Model Risk; AI in Trading; & AI in Wealth Management

April 10, 2025

In March 2025, we uncovered over 170 new developments in the use of Artificial Intelligence and Data Analytics across the financial services sector. These insights span activity within banks, asset managers, fintechs, and leading software vendors — reflecting the pace and diversity of innovation in the industry.

Each month, our research distils the most significant trends for our subscribers. Here’s a glimpse into three standout themes from our latest report.

 

AI Model Risk Management & Governance

As AI adoption deepens, financial institutions are taking proactive steps to manage risks and meet regulatory expectations. From bias detection tools and explainability frameworks to new governance codes and secure AI platforms, we’re seeing a strong emphasis on responsible and transparent AI. Notable initiatives this month include:

  • H2O.ai’s Model Risk Management framework for Generative AI
  • CIBC’s endorsement of Canada’s Voluntary Code on GenAI governance
  • Funding rounds for Knostic and AIceberg to boost AI infrastructure security

 

AI in Financial Markets Trading

AI is reshaping trading strategies across FX, commodities, and decentralised finance. Emerging tools offer pattern recognition, sentiment analysis, and smarter analytics — often outperforming traditional approaches. Highlights include:

  • Permutable AI’s LLM-powered commodity trading system
  • Chaos Labs’ institutional-grade crypto insights via Chaos AI
  • Grain’s $50M raise for an AI-driven forex platform

 

AI in Wealth Management

Advisory firms and wealth platforms are adopting AI to personalise advice, streamline tax planning, and automate portfolio workflows. This month’s examples include:

  • Aveni.ai and Octopus Money deploying generative AI for financial coaching
  • FP Alpha’s tax-aware planning tool
  • Copia’s launch of an AI-powered investment advisory assistant

 

These themes are just a sample of what’s happening across the landscape. Our full report includes detailed breakdowns by institution and vendor, with over 170 discrete insights from the past month alone.

 The full report is available to subscribers here: https://distinctiveinsights.ai/product/whats-new-report-march-2025/

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