A new report has flagged risks associated with the implementation of AI technology, which could be inhibiting financial services firms from reaping the benefits of efficiency improvements.
The World Economic Forum has released a new report in collaboration with Deloitte – Navigating Uncharted Waters – which identified risks associated with the adoption of artificial intelligence (AI) systems by financial institutions.
Risks cited in the report include:
According to the World Economic Forum, such risks could be addressed through the introduction of new, bespoke tools and governance frameworks.
“Using AI in financial services will require an openness to a fundamentally new way of safeguarding the ecosystem, different from the tools of the past,” Rob Galaski, partner, Deloitte Canada’s global banking & capital markets consulting leader, said.
“To accelerate the pace of AI adoption in the industry, institutions need to take the lead in developing and proposing new frameworks that address new challenges, working with regulators along the way.”
Matthew Blake, the World Economic Forum’s head of financial services, noted the benefits of AI technology in the financial services industry, stating that it provides firms with a “competitive edge”.
“AI offers financial services providers the opportunity to build on the trust their customers place in them to enhance access, improve customer outcomes, and bolster market efficiency,” he said.
“This can offer competitive advantages to individual financial firms while also improving the broader financial system if implemented appropriately.”
[Related: One man broker firms untenable]
Charbel Kadib is the news editor on The Adviser and Mortgage Business.
Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.
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