Exploring the Ethics of AI in Banking

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By David Brooks

  • Despite AI’s business transformation potential, what are some key ethical considerations that banks and fintechs need to consider when planning AI implementations?
  • What can we expect from regulators in Europe and around the world as the use of AI increases in the coming year and looking to the future?
  • How can AI be used to improve customer experience while ensuring equity while protecting customer privacy and data security?
  • For financial institutions considering new or broader AI solutions, what are the best ways to get on the right track for smooth, ethical execution and full compliance from the start?

With any new technology, it takes time for all industry participants to get on board, and the development of artificial intelligence (AI) and machine learning (ML) tools in the financial services industry is no different. However, progress in this area is happening much faster than anyone ever imagined, especially when it comes to financial institutions and their customers. Most financial institutions either already have some form of AI or are strongly considering adding it soon.

We’re no longer just talking about chatbots in customer service. New approaches to “standard” banking practices and innovative new consumer and business products and applications are being imagined and put into practice by financial institutions and fintech partners every day. From personalizing customer advice and response, improving risk assessment and automating repetitive processes to fraud protection and security and new applications beyond, AI is now moving beyond simply retooling old systems and helping to find new ways to so that banking works better. Not just for the financial institutions, but also for their customers.

But despite the rapid advances in AI, concerns remain about the ethical adoption of such technologies and their long-term impact on the economy and society. As the EU AI Law and other regulations come into force, the positive impact of AI in commercial enterprises, including financial services, will be carefully weighed against the privacy and security issues of the technology. Concerns about the inherent bias of “trained” algorithms, the increasing displacement of human jobs, and the potentially increased systemic risk that the expansion of AI could bring are just some of the ethical challenges.

It’s time for an update on all the pros and cons of AI, and that’s exactly what we’ll be teaching in this Metia/Finextra webinar.

Register for this Finextra webinar, hosted in collaboration with Metia, to join our industry expert panel in a discussion on the latest opportunities and challenges presented by the use of AI in financial institutions, with the overall goal of helping financial services organizations , to achieve this best decisions for their institutions.

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