Reshaping the Design of Money

Sovereign Digital Currencies: Reshaping the Design of Money and Payments Systems by Ross Buckley (University of New South Wales), Douglas Arner (University of Hong Kong), Dirk Zetzsche (University of Luxembourg), Anton Didenko (University of New South Wales), Lucien van Romburg (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.

This paper is a “must-read” supplement of this Looking Back, Looking Forward episode: Building Better Payment Systems.