Regulating Artificial Intelligence in Finance
Regulating Artificial Intelligence in Finance: Putting the Human in the Loop by Ross Buckley (University of New South Wales), Dirk Zetzsche (University of Luxembourg), Douglas Arner (University of Hong Kong), Brian Tang (University of Hong Kong) :: SSRN
This article develops a framework for understanding and addressing the increasing role of artificial intelligence (‘AI’) in finance. It focuses on human responsibility as central to addressing the AI ‘black box’ problem — that is, the risk of an AI producing undesirable results that are unrecognised or unanticipated due to people’s difficulties in understanding the internal workings of an AI or as a result of the AI’s independent operation outside human supervision or involvement.
After mapping the various use cases of AI in finance and explaining its rapid development, the authors highlight the range of potential issues and regulatory challenges concerning financial services AI and the tools available to address them.
Douglas Arner talked about the topic in the Lundis de l’IA et de la Finance (AI and Finance Mondays) – Regulation of AI in the financial sector: crossed perspectives in Asia and Europe. Watch the recording of the event held on 17 May 2021.