Artificial intelligence in financial services – benefits and costs
Milena Kabza · 2020
Artificial intelligence and machine learning are changing the face of the financial sector. They modify the existing connections between entities operating on the financial market, open possibilities for completely new operational models and introduce new rules of competition. The potential of these technologies is therefore a great challenge for the economy and the financial system, which is why it is becoming increasingly important to consider the consequences of new technologies for financial stability and protection of the financial consumer. Proper understanding and regulation of data privacy and ethics issues will play a significant role. Moreover, since artificial intelligence and machine learning are increasingly important in the functioning of the financial system, they are also a new source of systemic risk. These new technologies will therefore force re-analysis of the principles and techniques of supervision and regulation, including financial regulation, in order to avoid possible distortions for both the national and global economy. JEL: A12, C63, D18, G20, G28, O33