Building a First-of-Its-Kind AI Innovation Lab
AI Governance & Innovation: Tier-1 Global Custody Bank
Laksh Vaswani was engaged to architect and stand up the first AI Innovation Lab at a leading global custody bank — a mandate that required balancing regulatory scrutiny, board expectations, and the operational realities of deploying AI in a highly regulated environment.
The Challenge
The bank’s board had committed to an AI-first strategy but had no framework, no governance model, and no established programme infrastructure. The regulatory environment — with active FRB and OCC oversight — demanded that any AI deployment satisfy examiner-grade risk and control standards before production deployment. The window to deliver was 12 months.
The Approach
Laksh designed the lab from zero: governance framework, AI risk taxonomy, model validation protocols, and team structure — all aligned to emerging regulatory guidance on model risk management and responsible AI deployment.
- Designed the AI governance framework aligned to SR 11-7 model risk management standards
- Built and embedded AI risk controls covering model validation, explainability, and bias testing
- Established the team from ground zero — hiring, onboarding, and operating model design
- Developed the board-level reporting structure for AI programme oversight
- Delivered regulator-ready documentation satisfying FRB and OCC examination standards
- Launched first production AI programme — projected $10M+ in Year 1 efficiency gains
The Outcome
The AI Innovation Lab passed regulatory examination with board endorsement. The programme was recognised internally as a benchmark for responsible AI deployment in financial services — and referenced by the OCC as an example of how institutions can innovate within a strong governance framework.
Result: Board-endorsed AI programme | Regulator-approved governance model | $10M+ projected Year 1 efficiency gains | First-of-its-kind in global custody