Financial sector among the “most exposed” to the benefits and risks of artificial intelligence

The financial sector is among the “most exposed” to both the benefits and risks of artificial intelligence (AI). Bank for International Settlements (BIS) – reported on Tuesday (June 24).

The benefits of AI for the sector include improvements in lending and payments, while the risks include more sophisticated cyberattacks, the BIS said in a report on Monday. press release.

According to the announcement, to prepare for the impact that technology may have on the sector, central banks should implement artificial intelligence, predict its impact on the economy and the financial system, and use it in their own operations.

Central banks should also cooperate with each other, as the AI ​​revolution has increased the importance of data, according to the statement.

Next-generation AI models ‘have a direct impact on how central banks do their work’ Hyun Song Shinhead of research and economic advisor at BIS, said in a statement.

“Vast amounts of data could provide us with faster and richer information to detect patterns and hidden threats in the economy and financial system,” Shin said. “All this could help central banks better predict and steer the economy.”

According to the announcement, central banks could implement artificial intelligence to use data to better predict inflation and other economic variables, identify vulnerabilities in the financial system and better manage risk.

In the financial sector, the technology can improve efficiency and reduce costs of various financial services, according to the publication.

BIS’s own portfolio currently includes projects using artificial intelligence, Cecilia Skingsleyboss BIS Innovation Center– it was written in the statement. She pointed Project Aurorawhich uses payment data to detect money laundering and Project Raventhat uses artificial intelligence to increase cyber resilience.

“Central banks were early adopters of machine learning and are therefore well placed to make the most of AI’s ability to impose structure on vast troves of unstructured data,” Skingsley said.

On June 7, it was reported that banks’ growing dependence on Big Tech companies The possibilities of artificial intelligence is perceived as one of the greatest threats to banks.

In May, the U.S. Treasury said it was growing use of artificial intelligence in the financial services sector creates a cybersecurity risk.