Artificial intelligence will definitely change the financial world in the near future by automating investment and other services - but it could also imbalance systematic weaknesses and risks, according to the World Economic Forum (IEF).
The report, drawn from interviews with dozens of leading financial experts and industry leaders, concludes that artificial intelligence will disrupt the industry, allowing early adopters to gain a competitive edge. It also implies that technology will lead to more user-friendly products for consumers, such as sophisticated tools for personal finance and investment management.
What will happen to banks in the future?
Most importantly, the report points to the opportunity for large financial institutions to create machine learning services that are in the cloud and that other institutions access.
In other words, financial systems that include machine learning and are accessible via the cloud to many institutions can be a tasty target for hackers and a single point of system failure.
Wall Street is already rapidly developing machine learning, a technology that is at the heart of the artificial intelligence boom. Financial companies have a lot of data and a lot of incentive to innovate. Hedge funds and banks are hiring AI professionals as quickly as possible, and the financial industry is experimenting with fully automated back office. High-frequency trading automation has always created systemic risks. The system as a whole can be much more vulnerable due to its complexity.
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Ilya Khel