The Riffle
AI brings with it unprecedented opportunities in transforming the financial services industry, but also unprecedented challenges in regulating it. Finding a balance is going to be increasingly difficult in a technology that changes in days, not years.
The report focuses on:
Robo Advice - 24/7 tailored financial solutions, but opaque/complicated decision-making processes largely driven by tech that does not necessarily follow a set path.
Personalised Finance - Solutions that offer advice based on holistic views of ALL aspects of your life, with potential issues on data protection and zero privacy.
Consumer Education - AI can simplify the most complex concepts into easy to digest pieces. There is a risk of misinformation and in some cases, AI just ‘making things up’.
Key Takeaways
AI has transformative potential in consumer-facing financial services, but careful consideration of risks is crucial.
Regulators need to adapt their frameworks to accommodate AI while protecting consumers.
International collaboration is vital for consistent approaches to AI regulation.
A focus on ethics, transparency, and accountability is critical for responsible AI adoption.
"Human in the loop" models should be considered to mitigate risks and provide better outcomes for consumers.
Specific attention needs to be paid to the needs of vulnerable consumers.
Read our detailed briefing document here:
You can access the full report by clicking here.