Artificial intelligence (AI) in banking: The double-edged sword

Artificial intelligence (AI) is proving to be a double-edged sword for the banking industry. Sifting through the chatter in the financial industry there are two main themes emerging. Firstly, the'BigTech' with their prowess in data, artificial intelligence (AI) and cloud could exert significant strain on banking profits and eventually on the stability of financial systems. Secondly, the use of AI algorithms and models bring risks that are not yet fully understood and appreciated by industry or regulators. In other words, damned if you do, damned if you don't.