Business Express is an online portal that covers the latest developments in the world of business and finance. From startups and entrepreneurship to mergers and acquisitions, Business Express provides reporting on the stories that matter most to business leaders and decision-makers.The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
2024 05 15T213727Z 2 LYNXMPEK4E0CI RTROPTP 4 AI STARTUP scaled - Business Express

AI’s use in finance may need new rules, ECB says

AI’s use in finance may need new rules, ECB says

FRANKFURT (Reuters) – The use of artificial intelligence in finance is still in its infancy but it needs to be monitored and possibly regulated to prevent harm to consumers and ensure the proper functioning of markets, the European Central Bank said on Wednesday.

The ECB saw a number of opportunities from the use of generative AI by banks and other financial institutions, such as superior processing of information, more efficient customer service and even a greater ability to spot cyberthreats.

But it also warned about risks including herding behaviour, over-reliance on a limited numbers of providers and more sophisticated cyberattacks.

“Therefore, the implementation of AI across the financial system needs to be closely monitored as the technology evolves,” the ECB said in an article published as part of its regular Financial Stability Review.

“Additionally, regulatory initiatives may need to be considered if market failures become apparent that cannot be tackled by the current prudential framework.”

The European Union has formulated the world’s first artificial intelligence rules, which will force general-purpose and high-risk AI systems to comply with specific transparency obligations and EU copyright laws.

Don't miss out on any breaking news or insightful opinions!
Subscribe to our free newsletter and stay updated on the go!

By submitting this form, you are consenting to receive marketing emails from: Global Banking & Finance Review. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email.

So far, however, the ECB said the adoption of such systems by European financial companies was “in the early stages”.

“Market contacts indicate that euro area financial institutions may be slower to adopt generative AI, given the range of previously discussed risks (and) also considering potential reputational risks,” the ECB said.


(Reporting By Francesco Canepa; Editing by Muralikumar Anantharaman)


Recent Post: