“In the document “Impact of artificial intelligence on financial stability”, the RFS described the advantages and risks of AI, calling for stronger control over the technology. The international organization analyzed the consequences of using neural networks in the global financial sector and ways to reduce potential risks. Among the advantages are: increased operational efficiency; personalization of products; improving compliance with regulatory requirements; providing advanced data analytics. Among the vulnerabilities, the RFS sees the following: dependence on third parties; concentration of suppliers […]”, — write: businessua.com.ua
RFS in the paper “The Impact of Artificial Intelligence on Financial Stability” described the benefits and risks of AI, calling for stronger controls over the technology.
International organization analyzed the consequences of using neural networks in the global financial sector and ways to reduce potential risks. Advantages include:
- increase in operational efficiency;
- personalization of products;
- improving compliance with regulatory requirements;
- providing advanced data analytics.
Among the vulnerabilities, the RFS sees the following:
- dependence on third parties;
- concentration of service providers;
- cyber security risks;
- market correlations;
- data quality.
Among other things, AI can also be used by criminals.
“Generative AI increases the potential for fraud and misinformation in financial markets. “Misconfigured AI systems that are not calibrated to operate within legal, regulatory and ethical boundaries can be involved in actions that harm financial stability,” the document reads.
The organization recommended eliminating data errors during the development of neural networks for the field of finance. Regulators should strengthen work with the private sector, authorities should assess the effectiveness of the regulatory framework in the context of eliminating local and international vulnerabilities.
Earlier, the EU adopted a large-scale law on the regulation of AI.
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