ARTIFICIAL INTELLIGENCE AND THE FUTURE OF
FINANCIAL
AI has given birth to the
SERVICES fintech industry , making digital transactions and data aggregation a new way of life , but what
WRITTEN BY : JOANNA ENGLAND does the future hold ?
A lgorithms were the first form of technology in the financial services sector . In 1986 , APEX ( Applied Expert Systems ) introduced PlanPower , a commercially applied AI financial technology that was used to create financial plans for those with an annual income over US $ 75,000 per year .
Now , AI is a critical part of the fintech space in terms of collecting data , analysing information , safeguarding and facilitating transactions , creating customer centric products and streamlining processes .
Managing the AI monster But with great technology comes great responsibility and the application of AI and data collection in financial services is one that raises many questions in terms of management , security and regulation .
The European Union recently introduced rules that will begin to shape the way AI is used , with a particular focus on the financial services sector . Shawn Tan is chief executive of AI ecosystem builder Skymind , a machine intelligence startup company supporting the open-source deep learning framework Deeplearning4j and the JVM-based scientific computing library ND4J .
He explains , " They [ the new rules ] include regulations around cases that are perceived as endangering people ’ s safety or fundamental rights , such as AI-enabled behaviour manipulation techniques . There are also prohibitions on how law enforcement can use biometric surveillance in public places with broad exemptions .”
Tan says some “ high-risk ” cases also face specific regulatory requirements before and after entering the market . Meanwhile , transparency requirements have been introduced for certain AI use cases , such as chatbots and deep fakes , where EU lawmakers believe risk can be mitigated if users are made aware that they are interacting with something that is not human .
36 August 2021