Financial Service Bosses Voice Concerns Over AI Risks But Embrace Adoption for Sector’s Growth
According to the latest EY CEO Outlook Pulse Survey, 63% of financial service bosses are concerned about the lack of preparation for the unintended consequences of artificial intelligence (AI). These concerns mainly revolve around the threat of ‘bad actors’ using AI to spread misinformation or create deep fakes. Additionally, worries exist regarding the privacy risks and ethical usage of Generative AI technology.
However, these concerns have not deterred the financial sector’s enthusiasm for adopting AI. Out of the 96 chief executives surveyed, 90 stated that they were actively incorporating AI into their capital allocation, with over half of them having already invested in the technology.
Dr. Yi Ding, Assistant Professor of Information Systems at the Gillmore Centre for Financial Technology, emphasizes the importance of innovation for the financial services industry. While acknowledging the risks associated with AI, Dr. Ding believes that limiting research and implementation will hinder progress. He points out that AI has already proven valuable in supporting tasks such as data analysis for detecting financial criminals, chatbots for customer service in online banking, and forecasting for strategic decision-making. Failing to embrace these benefits is not an option for such a fast-moving sector, according to Dr. Ding.
Sheeraz Saleem, Chief Technology Officer at DKK Partners, suggests that AI should be employed to enhance business operations in collaboration with employees, improving their overall experience. The financial sector can benefit greatly from using AI to make better-informed decisions, leveraging algorithms to process and extract data for optimal results. Saleem emphasizes that risk analysis should go hand-in-hand with AI usage and highlights the need to continue developing AI’s coding to maximize its effectiveness across different markets.
Jonathan Young, CIO of FDM Group, sees AI as a tool that can supercharge digital transformation strategies, enabling organizations to provide reliable on-demand services while reducing costs. He also believes that AI can address critical issues in the financial sector, such as the lack of diversity, equity, and inclusion (DE&I) as well as the digital skills shortage. Young suggests that the missing 10% and the missing 34% of underrepresented groups in IT can be targeted through AI-driven initiatives.
In conclusion, financial service bosses express concerns about the risks associated with AI, particularly in relation to misinformation, deep fakes, privacy, and ethics. However, despite these concerns, the majority of executives are embracing AI and actively investing in its implementation. Experts in the field emphasize the importance of responsible AI development, risk mitigation, and training for staff to harness the significant benefits that AI offers the financial sector. AI is seen as a valuable tool to support crucial tasks, enhance decision-making, and address industry challenges such as diversity and skills shortages. As the financial sector continues to evolve, embracing AI’s potential will likely drive growth and innovation.
