Generative Artificial Intelligence in Finance : Risk Considerations / Ghiath Shabsigh, El Bachir Boukherouaa.

Format:

Book

Government document

Author/Creator:

Shabsigh, Ghiath.

Contributor:

Boukherouaa, El Bachir.

Series:

Fintech Notes; Fintech Notes No 2023/006

Fintech Notes

Language:

English

Physical Description:

1 online resource (24 pages)

Other Title:

Generative Artificial Intelligence in Finance

Place of Publication:

Washington, D.C. : International Monetary Fund, 2023.

Summary:

In recent years, technological advances and competitive pressures have fueled rapid adoption of artificial intelligence (AI) in the financial sector, and this adoption is set to accelerate with the recent emergence of generative AI (GenAI). GenAI is a significant leap forward in AI technology that enhances its utility for financial institutions that have been quick at adapting it to a broad range of applications. However, there are risks inherent in the AI technology and its application in the financial sector, including embedded bias, privacy concerns, outcome opaqueness, performance robustness, unique cyberthreats, and the potential for creating new sources and transmission channels of systemic risks. GenAI could aggravate some of these risks and bring about new types or risks as well, including for financial sector stability. This paper provides early insights into GenAI’s inherent risks and their potential impact on the financial sector.

Notes:

Description based on print version record.

ISBN:

9798400250569