In its paper, “The Impact of Artificial Intelligence on Financial Stability,” the FSB outlined the benefits and risks of AI, calling for tighter oversight of the technology.
The international organization analyzed the consequences of using neural networks in the global financial sector and ways to reduce potential risks. Among the advantages are:
improving operational efficiency;
product personalization;
improving regulatory compliance;
providing advanced data analytics.
Among the vulnerabilities, the SFS sees the following:
dependence on third parties;
concentration of service providers;
cybersecurity risks;
market correlations;
data quality.
Among other things, AI can also be used by attackers.
“Generative AI increases the potential for fraud and misinformation in financial markets. Misconfigured AI systems that are not calibrated to operate within legal, regulatory, and ethical boundaries may engage in behavior that harms financial stability,” the document says.
The organization recommended eliminating data errors in the development of neural networks for the financial sector. Regulators should strengthen their work with the private sector, and authorities should assess the effectiveness of regulatory frameworks in the context of eliminating local and international vulnerabilities.
Earlier, the EU adopted a large-scale law on AI regulation.