AI is Transforming Financial Services, Regulatory Guidance Can Help

The rapid advancement of Artificial Intelligence (AI) technologies has already transformed business operations across the globe. From customer service chat-bots to adaptive cybersecurity, the applications of AI are nearly limitless. When properly designed, AI can help minimize paperwork, reduce costs, and drive better business decisions by increasing the predictive accuracy of future outcomes and mitigating the cognitive biases inherent in human decision making. In the financial services industry, AI has the potential to expand access to affordable credit for consumers and small businesses and combat fraud and financial crimes, but many financial institutions remain reluctant to deploy AI to its maximum potential without clear guidance from US regulatory agencies. Like many new technologies, the current AI landscape lacks a depth of established legal and regulatory precedent to rely on.