After periods of hype followed by several “AI winters” during the past half century, we are experiencing an AI summer that might be here to stay. AI now drives many real-world applications in the financial sector, ranging from fraud detection to credit scoring. Embracing AI promises considerable benefits for businesses and economies through its contributions to productivity and innovation. At the same time, the potential challenges to adoption, including governance, workforce impacts, and other social concerns cannot be ignored. In the present post, we focus on these challenges from a model risk perspective. We will illustrate many aspects in the context of credit models.