From Pilot to Risk Officer: Scotiabank's Smalley Leads Through AI Evolution

Ryan Smalley, Scotiabank’s executive vice president of Enterprise and Non-Financial Risk, argues that institutions face a double-edged AI risk: moving too slowly can erode market share even as rapid adoption raises governance and regulatory challenges. His background as a Naval Academy graduate who flew helicopters and worked in the intelligence community before entering financial services informs his practical view of AI, risk, and workforce transformation. Smalley cautions that delaying AI adoption is itself a risk, citing early-2010s digital transitions where some banks transferred risk by not moving quickly enough. Deloitte Canada partner Michael Chau adds that governance is crucial, since speed without oversight can backfire. Smalley describes AI risk as a 'shared control stack'—data governance, model oversight, and cyber hygiene—that enables both defense and support for AI initiatives, while acknowledging AI’s gray-box nature invites accountability. He discusses insights from his work with Carnegie Mellon University students and the notion of 'critical fluency' for the workforce of the future, arguing that talent development is essential to scale AI responsibly. The broader takeaway is that banks must balance speed and control to stay relevant as AI reshapes customer experience, risk management, and operations.