The financial sector is “most exposed” to both the benefits and risks of artificial intelligence (AI). Bank for International Settlements (BIS) said on Tuesday (June 24).
BIS said in a statement on Monday that the benefits of AI for the sector include improved lending and payments, while the risks include more sophisticated cyber-attacks. News for the newspaper.
According to the release, to prepare for the impact the technology will have on the sector, central banks should embrace AI, assess its impact on the economy and financial system, and use it in their operations.
Central banks must also collaborate with each other, as the AI revolution has increased the importance of data, according to the release.
New-generation AI models “have a direct impact on how central banks do their jobs,” he said. Heaven Song ShinHead of Research and Economic Adviser at BIS said in the release.
“A lot of data can give us faster and richer information to detect patterns and hidden risks in the economy and financial system,” Shin said. “All of this can help central banks better predict and steer the economy.”
According to the release, central banks can deploy AI to better predict inflation and other economic variables, identify weaknesses in the financial system and use data to better manage risks.
In the financial sector, technology can improve efficiency and lower costs for a variety of financial services, according to the release.
BIS's own portfolio currently includes projects that use AI, Cecilia SkingsleyHead of BIS Innovation Hub, said in the release. He pointed. Project Aurorawhich uses payments data to detect money laundering, and Project Ravenwhich uses AI to enhance cyber resilience.
“Central banks were early adopters of machine learning and are therefore well-positioned to make the most of AI's ability to impose structure on vast collections of unstructured data,” Skingsley said.
It was reported on June 7 for banks' growing reliance on big tech companies AI capabilities. Seen as one of the biggest threats to banks.
In May, the US Treasury Department said that rising Use of AI The financial services sector faces cyber security threats.