AI's Growing Role in Finance: Risk or Opportunity?
Global financial regulators are closely monitoring the increasing use of artificial intelligence in the financial industry. Concerns include the widespread adoption of similar AI models and hardware, potentially causing systemic risks. Authorities emphasize the need for enhanced capabilities in understanding and utilizing AI technology effectively.
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- United Kingdom
Global financial regulators are intensifying their scrutiny of the financial industry's growing reliance on artificial intelligence. As banks and other entities accelerate their use of AI, authorities caution against the widespread adoption of identical AI models and hardware, warning that such herd behavior could introduce systemic vulnerabilities.
The Financial Stability Board, a risk oversight body of the G20, highlighted in its report that over-dependence on limited AI models and hardware options can pose significant risks. These concerns extend to potential crises if few alternatives are available.
In support, the Bank for International Settlements, representing central banks worldwide, called for financial overseers to enhance their proficiency in both understanding technological advances and in adopting these technologies. The BIS emphasized the urgency for central banks, financial regulators, and authorities to boost their competencies and capabilities with AI technologies.
(With inputs from agencies.)
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