Building Global Trust in the Financial System through ‘Trustworthy Artificial Intelligence’

Building Global Trust in the Financial System through ‘Trustworthy Artificial Intelligence’
By Mihaela Breg

The current Artificial Intelligence (AI) and ‘automated decision-making’ systems have the capability to generate remarkable benefits for society. However, artificial intelligence also gives rise to specific risks.

In order for artificial intelligence systems to work for the progress and advancement of mankind these risks should be properly managed. Therefore, a human-centric approach to AI is very much required in our society, forcing us to bear in mind that the main purpose for developing, improving and using AI in our day-to-day lives is to increase the well-being of humans.

Many current artificial intelligence systems are based on machine learning and big data driven techniques. Therefore, the selection and collection of data injected in the system needs to be balanced enough otherwise the system could learn to make unfair and biased decisions. Events that threaten the user trust can be damaging to the global society and economy.

The European AI Alliance (a multi-stakeholder forum which consists of experts engaged in open AI-related discussions and its impact on the economy) has coined the term ‘Trustworthy AI’. According to the draft ‘Ethics Guidelines for Trustworthy AI’ (published in December 2018) ethical principles, fundamental rights and core values should be followed when developing and deploying technically robust artificial intelligence systems.

To drive the change in the right direction, AI-based applications need to be regulated respecting global rules and standards; especially when funds and sensitive data are involved. It’s known that trust rests at the core of our financial system and building global trust in the financial institutions is not an easy task. Here is where banking regulation comes into play. The policy recommendations and guidelines on AI-related challenges, for banks and other market players (such as third party providers, payment apps and fintechs) will enforce strict controls and create secure environments where the users are verified and identified.

An ethical approach to artificial intelligence combined with the right level of regulation will ultimately generate user trust and facilitate broader endorsement of AI-based solutions in the financial sector.

Like this content? Sign up to our weekly fintech roundup for more industry news and updates.