The insurance industry, like many others, faces pressure to adopt best-in-class AI solutions to modernize business while ensuring compliance with complex regulations governing AI use. Learn how this Fortune 200 company embraced innovation while deploying AI responsibly.
This Fortune 200 financial services company built a legacy of integrity and financial security for its customers. With a strategic vision of becoming a technology-forward organization, they have consistently sought to integrate best-in-class solutions across their operations.
In 2024, facing growing regulatory scrutiny and AI adoption challenges, the financial services company chose to work with Monitaur to establish a robust AI governance framework that would help them adopt AI without stifling innovation. There were three critical challenges they faced in their AI governance journey:
The financial services company faced a critical challenge in their journey to become a technology-forward organization: they needed a centralized AI system inventory and governance framework. To address this challenge, Monitaur was brought in to implement a centralized AI system of record that would provide a unified approach to governance.
In just 32 days, they successfully drafted and published their AI Governance Policy—a process that would have typically taken nearly a year and cost three times as much with traditional consulting firms or law firms.
This solution enabled the company to create a comprehensive inventory of their AI models and establish consistent governance policies aligned with regulatory requirements. The centralized platform streamlined documentation processes and improved visibility across previously siloed systems, creating the foundation needed for their expanded AI initiatives.
“With Monitaur's help, we were able to draft and publish our AI Governance Policy in 32 days. Had we opted to go with an SI or law firm, it would have cost at least 3x as much and taken the better part of a year. For sure, if we didn't have Monitaur, policies alone, we would be 10 miles back.” ~AVP, AI Governance
To achieve consistency and standardization, the company wanted a unified risk assessment methodology that could be applied effectively across all departments, establishing a cohesive approach to AI governance.
Working with Monitaur, they developed a comprehensive risk stratification framework in just 46 days. This framework enabled consistent evaluation of AI systems throughout the enterprise, establishing standardized criteria for assessing risk levels. The new methodology allowed them to implement risk-based governance with tailored controls and documentation requirements based on specific risk classifications.
This strategic approach improved efficiency by over 30%, allowing teams to allocate resources appropriately according to risk profiles. Furthermore, the company established clear risk mitigation strategies with defined paths for addressing high-risk AI applications.
These strategies incorporated appropriate oversight and testing procedures, ensuring a standardized approach to identifying and addressing potential issues proactively.
Finally, the company wanted to establish proactive regulatory readiness and enhance its vendor oversight capabilities. By using Monitaur's comprehensive framework, they developed clear processes for vendor model governance and created regulatory-ready documentation that positioned them ahead of emerging requirements.
This strategic approach enabled them to confidently navigate the complex regulatory landscape for AI technologies while maintaining proper oversight of third and fourth-party vendor AI models. The solution included implementing vendor oversight protocols and documentation standards that align with emerging regulations, including the NAIC requirements, Colorado SB-24-205, and New York DFS Circular 7.
By being proactive, they can now confidently respond to regulatory inquiries with consistent, well-documented information. By creating a dedicated regulatory compliance team and completing thorough readiness assessments, they positioned themselves to effectively manage vendor relationships while maintaining their commitment to responsible AI innovation.
“We thought that AI Governance would be a long journey, but Monitaur exceeded our expectations. In less than 6 months, we were able to 8x AI model inventory while also creating foundational AI policies to support our organization's use of AI.” ~AVP, AI Governance
By working with Monitaur, this Fortune 200 firm has achieved remarkable results that demonstrate the power of combining strong AI governance with strategic innovation for financial services.
Not only were they able to establish comprehensive AI governance in a highly regulated industry, but they also created a blueprint for enterprise-wide responsible AI adoption and enhanced regulatory readiness with improved ability to respond to inquiries. Some of the highlights include:
To learn more about how your organization can achieve similar results, contact us.
