Ensuring Accuracy in AI-Driven Third Party Risk & Diligence

MOUNTAIN VIEW, CA - April 1, 2024

In the rapidly evolving world of financial services, risk management and diligence are more critical than ever. As organizations strive to navigate the complex landscape of regulatory compliance and counterparty risk, the need for accurate, efficient tools has become paramount. This is where CENTRL’s innovative AI capabilities—CentrlGPT—plays a transformative role.

However, the true power of AI lies not just in its ability to automate processes but in the accuracy of its outputs. In this blog, we delve into why accuracy is essential in AI, particularly in risk management and due diligence, and how CENTRL’s AI tool called CentrlGPT has achieved 95%+ accuracy in evaluating results of third party risk and diligence.  

Accuracy in Risk Management and Due Diligence

  Risk management and due diligence are all about identifying, assessing, and mitigating potential risks. In the context of due diligence, accuracy is crucial for ensuring compliance with regulatory requirements and for making informed decisions about potential investments or partnerships. Inaccurate due diligence can lead to missed red flags, resulting in poor investment decisions or regulatory violations, financial losses, regulatory penalties, and damage to reputation.  

How CENTRL is Measuring and Improving Accuracy

  CENTRL has implemented a rigorous process to measure and enhance the precision of its AI-driven capabilities, CentrlGPT. Our approach is multifaceted, focusing on continuous improvement and validation through practical application and expert review.

1. Time-Intensitivity

  Our journey towards accuracy begins with the creation of a golden data set, comprising questions and sample responses that have been meticulously evaluated to establish a benchmark of risk scores. By running these responses through CentrlGPT and comparing the results, we can measure the AI’s accuracy in a controlled environment. This allows us to measure the accuracy of CentrlGPT objectively in a controlled environment. This process not only highlights the AI’s strengths but also identifies areas for refinement, guiding our ongoing development efforts.

2. Real-world Validation with Clients

  Beyond theoretical accuracy, we prioritize real-world applicability. We have created an early adopter program for clients to use and test CentrlGPT. CentrlGPT evaluates and flags responses received from counterparties. We work with clients’ users to manually verify the results. This hands-on approach allows us to measure the AI’s performance in live scenarios, ensuring that our solutions meet the complex, evolving needs of the financial services industry.

3. Collaboration with Subject Matter Experts

  To further enhance accuracy, we engage with subject matter experts who bring in-depth knowledge of risk management and due diligence. Their insights are invaluable in reviewing and refining CentrlGPT’s accuracy, ensuring that our AI capabilities are aligned with industry best practices and regulatory requirements.  

The Outcome : Achieving 95+ accuracy rate

  The result of our comprehensive approach to measuring and improving accuracy has been remarkable, with CentrlGPT achieving an accuracy rate of over 95%. Needless to say, we believe that high accuracy rates are critical for wider adoption of AI tools and for empowering our clients to make informed, confident decisions in their risk management and due diligence processes.    

At CENTRL, we understand that in the world of financial services, accuracy is not just a feature—it’s a necessity. As we continue to innovate and refine our offerings, we continue to stay focussed on accuracy as our primary metric of success.

Interested in learning more? Getting started with CentrlGPT is simple. Schedule a demo, or learn more about what AI can do for your teams.