Introduction to AI in Finance
The increasing integration of artificial intelligence (AI) in the financial sector is reshaping the landscape of financial services. Regulatory bodies are paying closer attention to this trend, particularly concerning financial stability. The growth stems from advancements in large language models (LLMs), deep learning technologies, and enhanced access to a variety of unstructured data sources. Additionally, financial institutions aim to harness AI to cut costs and maintain a competitive edge.
Regulatory Scrutiny and Challenges
The rise of AI is not without challenges. Regulators are concerned about the potential risks associated with its use in financial services. As institutions adopt these technologies, they must navigate the complexities of ensuring compliance while also mitigating risks that could threaten financial stability. The need for a balanced approach is paramount, as the benefits of AI must be weighed against the possible repercussions.
