Responsible deployment of artificial intelligence in financial services

Responsible deployment of artificial intelligence in financial services

June 17, 2021    

Cenfri, with support fromGIZand in collaboration withOn Think Tanks, is hosting a series of digital dialogues to explore issues at the intersection of digital governance, digital financial services (DFS) and the Sustainable Development Goals (SDGs) across emerging economies. This note puts the spotlight on the first topic, namely responsible deployment of Artificial Intelligence (AI) in financial services. 

AI is one of the digital technology trends shaping the future of financial service provision. For example, algorithmic decision-making is being applied to unlock alternative data to serve previously unreachable clients with credit or insurance, and across the financial services spectrum, chatbots are changing the nature of client services, marketing and financial advice. This note puts the spotlight on the first topic, namely responsible deployment of Artificial Intelligence (AI) in financial services.

In an era where algorithms make decisions and machines replace human interaction: how should regulators respond to fulfil their mandate of protecting consumers while facilitating market development? 

Conversations around the use of AI in digital financial services (DFS) are complex and multi-layered: they exist at the intersect between governance, regulation and ethics, and take place across the civil, academic, private and public spheres.

In developed markets, discussion around the regulation of tech has been ongoing for years, with increasing emphasis on ethical uses of data that underpin automated decision-making. In emerging markets, the debate around what effective regulation of AI means and what regulation in the DFS sphere should focus on is more recent.

As the debate unfolds, a number of key questions are emerging and the answer to these and other questions will shape the financial lives of people in developing nations for years to come, but they are by no means clear-cut yet. The New Nexus convening on responsible AI in DFS will be bringing together academics, research institutes, technology and regulatory and policy experts to discuss important questions that can start to chart a way forward. To find out more, read the short note, follow and contribute to the digital board or contact karenk@cenfri.org.

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AI and fintech infographic Size 4.37 MB

 

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