Powering the Digital Economy: Opportunities and Risks of Artificial Intelligence in Finance
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Summary:
This paper discusses the impact of the rapid adoption of artificial intelligence (AI) and machine learning (ML) in the financial sector. It highlights the benefits these technologies bring in terms of financial deepening and efficiency, while raising concerns about its potential in widening the digital divide between advanced and developing economies. The paper advances the discussion on the impact of this technology by distilling and categorizing the unique risks that it could pose to the integrity and stability of the financial system, policy challenges, and potential regulatory approaches. The evolving nature of this technology and its application in finance means that the full extent of its strengths and weaknesses is yet to be fully understood. Given the risk of unexpected pitfalls, countries will need to strengthen prudential oversight.
Series:
Departmental Paper No 2021/024
Subject:
Artificial intelligence Cyber risk Economic sectors Financial sector Financial sector policy and analysis Financial sector stability Financial services Machine learning Technology
Frequency:
occasional
English
Publication Date:
October 22, 2021
ISBN/ISSN:
9781589063952/2616-5333
Stock No:
PDEORAIFEA
Pages:
34
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