Is using Artificial Intelligence worth it?
AI technology has had an enormous impact on the Banking & Finance sector. This trend is only likely to continue.
Already most credit check, KYC and AML decisions are now made by algorithms. Credit scores and, therefore, credit worthiness tests are also hugely faster and more accurate when carried out by algorithms trained on large data sets based on past decisions and outcomes.
Similarly, investing and trading continue to be disrupted by AI. In some markets more trade happens as the result of orders placed by algorithms than by humans.
The so-called “FinTech Revolution”, which has disrupted and forced a rethink of existing paradigms within Banking & Finance, is strongly assisted by AI technologies – for example, many of these companies use AI to combat fraud.
However, the mass adoption of AI over the past ten years has also brought up important concerns. When using these technologies, institutions now must ask themselves fundamental questions:
- Are the algorithms we use fair and transparent?
- Are our customers adequately protected from risk?
- Is our users’ data safe?
- Are these approaches sustainable?
- And crucially, is using AI worth it?
Speaker: Professor Nir Vulkan
Nir is Associate Professor of Business Economics at Saïd Business School, is a long term member of the Oxford Man Institute for Quantitative Finance, where leading researchers from AI are developing models for trading in particular. He is Director of the Oxford Programmes on Fintech; Blockchain Strategy; and Algorithmic Trading and Chair of the Committee set up to advise the European Commission on AI in Banking and Finance.