The financial sector is one of the sectors “most exposed” to both the benefits and risks of artificial intelligence (AI), Bank for International Settlements The BIS announced this on Tuesday (June 24).
The benefits of AI to the industry include improved lending and payments, but the risks include more sophisticated cyber attacks, the BIS said in a report on Monday. press release.
According to the press release, to prepare for the impact of this technology on the financial industry, central banks should embrace AI to predict and integrate its effects on the economy and financial system.
According to the announcement, central banks also need to cooperate with each other as the AI revolution increases the importance of data.
New generation of AI models are 'directly impacting how central banks do their jobs' Hyun Seong ShinThe BIS's head of research and economic adviser said in a statement.
“Huge amounts of data could provide faster and richer information to detect patterns and potential risks in the economy and financial system,” Singh said. “All of this could help central banks better forecast and guide the economy.”
According to the announcement, central banks could use data to more accurately forecast inflation and other economic variables, identify vulnerabilities in the financial system, and deploy AI to better manage risks.
In the financial sector, the technology has the potential to improve efficiency and reduce costs across a range of financial services, according to the release.
BIS's portfolio now includes projects that leverage AI. Cecilia Kingsleythe head BIS Innovation Hub” she said in the release. Project AuroraUsing payment data to detect money laundering; Project Ravenuses AI to strengthen cyber resilience.
“As early adopters of machine learning, central banks are well placed to take full advantage of AI's ability to give structure to vast amounts of unstructured data,” Skingsley said.
On June 7, it was reported that banks are becoming increasingly reliant on Big Tech companies. AI Features It is seen as one of the biggest risks for banks.
In May, the U.S. Treasury Use of AI There are cybersecurity risks in the financial services sector.
