Artificial Intelligence in Financial Services
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Explore the key themes in the report
Don’t believe the hype. Or do. AI is not actually intelligent, but the practical barriers to deploying the technology are lowering all the time.
This chapter explores the challenges, the ethics, the ‘board room’ question and how regulators are responding and the initiatives that are underway across the globe to regulate AI.
Given the specific risks AI poses, the challenge for lawyers is to understand both how existing legal and regulatory frameworks might apply and how regulation might develop in this area at an international, regional and national level.
This chapter reviews the existing regulatory framework, how regulators are responding, and regional and international initiatives.
All modern financial services are underpinned by IT systems and the failure or misuse of those systems can cause significant societal and customer harm.
This chapter focuses on the regulatory approach to new technologies in the UK for financial services including: operational resilience, accountability under the SMCR, safety, transparency and bias.
Availability of new AI tools and services puts technology such as voice or facial recognition at the fingertips of financial services firms – allowing them to better track, monitor and predict behaviour of customers and employees…but should they?
This chapter explores the implications of data, AI and the fundamental principles of the GDPR.
Competition authorities are increasingly turning their attention to digital markets and the effect of innovative technology on competition. Whist the development of ‘machine learning’, complex algorithms and systems capable of processing vast quantities of data has led to innovative commercial applications for AI, there are competing views as to how competition law should deal with these developments.
In this chapter we review the impact of competition law in financial services, what enforcement action has taken place to date and consider key issues around pricing, algorithmic collusion and regulatory engagement.
While AI is a powerful new form of computing technology, it is also unpredictable. There is a risk that the system underperforms or, without any common-sense override, makes decisions that are wildly wrong.
This chapter explores how to apply established legal concepts to new technology, focusing on Contract law and Tort law.
Governments and regulators clearly have work to do in the short term to address issues presented by narrow AI developed and deployed by financial services institutions and to anticipate how the technology may be used in the future.
This final chapter covers our thoughts on how this may continue to develop at national, regional and international levels.
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The world is transforming faster than ever before. Traditional business models across many sectors have either already been disrupted by new and agile players, or are staring down the barrel of imminent disruption.
No matter which industry organisations belong to, they all share a common focus: the need to contemplate and implement profound strategies of digital transformation.