Artificial Intelligence seen as opportunity and threat by financial services sector

Global law firm Baker & McKenzie has paired with Euromoney Thought Leadership to reveal what is driving the global financial services industry towards a rapid embrace of Artificial Intelligence and Machine Learning, and the implications both for the industry and financial markets as a whole. Ghosts in the machine: Artificial intelligence, risks and regulation in financial markets shows an industry rapidly seeing the potential benefits of AI, while being increasingly concerned about risk and the ability of regulators to keep pace. The survey asked 424 senior executives from financial institutions and fintech companies around the world as well as leading experts in the field for their view on how AI will affect the financial sector, what risks and benefits AI will bring to the sector, what the associated regulatory and legal challenges will be and many more questions. Surprisingly similar views emerged from across the globe, with only a few notable variations, such as AI investment seen as lagging slightly in Asia Pacific compared to other regions and Latin American participants seeing AI as a regulatory tool to combat money laundering first rather than market misconduct, the top choice elsewhere. The results provide some insights into the likely future of the financial sector.