Great opportunities – and some hazards - await AI's role in financial services ANZ BlueNotes

Artificial intelligence is expected to revolutionise the financial services industry with an unprecedented depth and breadth of insight and the ability to act on information and learn from its actions. However, many executives acknowledge a degree of risk surrounding the use of AI, according to a research from global law firm Baker & McKenzie. Trading, financial analysis and IT are expected to be changed the most over the next three years according to respondents, but the impact is expected to be wide ranging with machine learning to affect risk assessment, credit assessment and portfolio management. Survey respondents were clear that machine learning will have a positive impact on competitiveness in financial markets yet believe the most negative effects of AI will be in the makeup of the work force and market stability. Like with all technology, the introduction of AI in financial services will largely depend on how it is employed that will ultimately determine the risk and reward. It also raises important questions and concerns about the liability of a functioning AI platform.