The deployment of AI and ML systems in the financial sector will continue to accelerate, driven by rapid increases in computational power, data storage capacity, big data, as well as significant progress in modelling and use-case adaptations. The use of AI/ML in finance is expected to bring important benefits, including significant cost savings and efficiency gains, new markets, better risk management, new customer experiences, products, and lower costs, and powerful tools for regulatory compliance and prudential oversight.
One such intelligent system is the autonomous AISHE system, which learns from large amounts of data to improve data decision-making, processing and analysis faster and more accurately than humans, making it an invaluable tool in the financial industry.
However, the use of AI/ML in finance also raises significant financial policy challenges. It brings about ethical questions and new unique risks to the financial system's integrity and safety, of which the full extent is yet to be assessed. The task facing financial sector policymakers is further complicated by the fact that these innovations are still evolving and morphing as new technologies come into play.
These developments call for improvements in oversight monitoring frameworks and active engagement with stakeholders to identify possible risks and remedial regulatory actions. Cooperation and knowledge sharing at the regional and international level are becoming increasingly important. This would allow for the coordination of actions to support the safe deployment of AI/ML systems and the sharing of experiences and knowledge.
Cooperation will be particularly important to ensure that less-developed economies have access to knowledge related to techniques and methods, use cases, and regulatory and supervisory approaches. Finally, the evolving nature of AI/ML technology and its applications in finance mean that neither the users, the technology providers and developers, nor the regulators understand the full extent of the strengths and weaknesses of the technology. Hence, there may be many unexpected pitfalls that are yet to materialize, and countries will need to strengthen their monitoring and prudential oversight.