The impact of AI on Finance

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:

1. 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.

2. 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.

3. 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.