Unveiling the Trailblazing Startups: Insights from Ally Innovation Challenge – Responsible AI

• Jesse Podell
• Oct 24, 2024
• 5 min read

This May, we launched Ally’s first Open Innovation challenge, aimed to foster a learning environment between Ally and startups that prioritizes deploying AI responsibly in a safe and secure manner. Today, we are delighted to announce the participation of five startups in the Ally Innovation Challenge – Responsible AI, and our insights from our inaugural program.

The startups applying for the Open Innovation Challenge showcased strong potential for learning. Amidst an exciting number of applicants from across the country we selected less 5% of those who submitted to participate in our program. We were thrilled to witness the diverse range of founder backgrounds and various maturity levels, which truly reflects the dynamic and vibrant AI infrastructure ecosystem.

Unveiling the 5 startups, and how they describe themselves in their own words:

• Coverbase, San Francisco, CA: Seeking to simplify third-party management by automating due diligence, enabling businesses to work together safely, and turning compliance into a competitive advantage

• DynamoAI, San Francisco, CA: Aiming to provide end-to-end privacy, security, and compliance solutions to prepare organizations for emerging AI regulations

• Griptape, Seattle, WA: Focused on providing developers with tools & frameworks to build, deploy, and scale AI applications, from the development framework to the execution runtime

• Liminal, Denver, CO: Committed to helping enterprises safely interact with all generative AI use cases, providing horizontal security for compliance-defined data types

• Zengines, Boston, MA: Striving to make data conversions frictionless, allowing companies to adopt the latest and best technologies seamlessly

We extend our gratitude to our inclusive group of six VC firms: Aperture VC, Ardent Venture Partners, Core Innovation Capital, Gilgamesh Ventures, Mendoza Ventures, and Noemis Ventures – as well as dozens of individuals from across various roles and functions within Ally, who played a pivotal role in assisting us with the rigorous selection process. Their valuable contributions and support have been instrumental in shaping this challenge and identifying the most promising startups.

Startup Feedback

Our AI & Technology, Risk, Security, and Supply Chain units, along with technologists that support all of Ally’s underlying businesses, conducted interactive mentoring sessions for these five participants over an 8-week period. They shared knowledge, presented their work to a tech-focused audience, and mutually benefited from each other's expertise.

For Ally, our interactions with these AI startups have underscored themes that have been driving our approach to AI. While some prevalent themes around AI have emerged strongly, many aspects of the future of AI and how it might be deployed in various contexts will continue to evolve and develop. It is important to acknowledge that responsible AI practices may vary based on each organization's specific circumstances, including when, where, and how they are implemented. The participating startups told us that their insights are informed by the collective knowledge and experiences they have accumulated working within financial services as well as across other industry sectors.

The Startups touched on many themes during their time in the program, which prevail in current discussions on AI, and continue to be issues of importance, and sometimes had unique takes on how to approach challenges. For example, one startup specifically mentioned that their perception of responsible AI involves aligning with user intentions, ensuring that information surfaced by AI does not violate their preferences, and identifying vendors using AI and their data practices. Our participants emphasized the importance of building trust with users by not missing valuable information such as specific data, insights, or results that they expect or desire to be presented to them when using AI tools or systems. As banks interact with numerous vendors, many of them utilizing AI in potentially different ways, banks should continuously monitor how vendors are using AI and how they are utilizing data.

The Startups also expressed a vision for the future. Our participants expressed a desire for active engagement between the AI community and the banking industry, together with an openness to learning from industry experts, and gathering insights and feedback on their approach to AI. By actively engaging with the AI community, they believe banks like Ally can stay updated on the latest advancements and best practices, potentially enhancing the banks’ own AI capabilities.

Wrapping up our exciting program and learnings

In conclusion, the insights shared by the startups participating in our Innovation Challenge have underscored many themes that have been guiding Ally in its deployment of AI and helped shed further light on how views are evolving and will continue to evolve in the development of AI in the banking sector. We value our exposure to these startups and look forward to continuing to foster an ongoing dialogue in our journey to understand all of the considerations in developing and implement AI solutions responsibly.