H2O.ai Launches First Model Risk Management Framework For GenAI In Regulated Industries

KUALA LUMPUR, March 7 (Bernama) -- Leader in open-source generative artificial intelligence (GenAI), H2O.ai, has unveiled the industry's first Model Risk Management (MRM) framework for GenAI.

According to H2O.ai in a statement, the MRM solution aims to bring rigorous validation, compliance, and transparency to GenAI applications in financial services, banking, and other highly regulated sectors.

With AI adoption accelerating, particularly in regulated industries, the need for trustworthy, fair, and reliable AI models is critical.

H2O.ai’s Model Risk Management solution provides a structured evaluation framework that integrates automated testing and evaluation with human calibration, model weakness and failure identification, bias detection, and explainability tools to help enterprises validate and mitigate AI risks before deployment.

“By bringing rigorous Model Risk Management to GenAI, we are enabling banks and financial services to confidently deploy AI solutions with auditable, explainable, and reliable outcomes,” commented H2O.ai chief executive officer and founder, Sri Ambati.

H2O.ai’s Model Risk Management framework extends traditional MRM principles to GenAI, providing automated test generation, embedding-based functionality metrics, human-calibrated evaluations, and robustness testing with adversarial inputs.

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The solution also enhances transparency and model explainability, ensuring organisations meet regulatory compliance requirements.

H2O.ai’s Model Risk Management capabilities are now available as part of Enterprise h2oGPTe, supporting airgapped and on-premise deployments to ensure compliance with data sovereignty, security, and privacy mandates, allowing financial institutions to validate and monitor AI models securely.

-- BERNAMA