On 22 May 2024, the Organisation for Economic Co-operation and Development (OECD) and the Financial Stability Board (FSB) held a roundtable with experts from the public and private sectors and with academics to analyse trends and use cases of artificial intelligence (AI) in finance. Roundtable participants discussed opportunities and risks and shared emerging best practices regarding policy frameworks.
The growing adoption of AI technologies by banks, insurers, and asset managers is resulting in efficiency gains in areas such as risk modelling, trading, claims handling, fraud detection, and financial crime prevention. Generative AI use in finance does not seem transformational at present, at least for regulated financial institutions, as it focuses on operational efficiency improvements and is largely exploratory. Supervisors are also benefiting from AI, with an enhanced capacity to manage large volumes of data.
Notwithstanding these benefits, the use of AI also raises concerns in terms of model risk, data protection, governance, privacy, and ethics. It may also create financial stability risks given its potential to amplify interconnections among financial firms as well as complexity and opacity concerns around models and data.
Policymakers should strive to promote the safe use of AI in financial services, particularly through global cooperation on standards and best practices.