AI Updates in Fintech You Can't Afford to Ignore

The US, along with seventeen other nations, have agreed on devising policies and principles to ensure the safety of Artificial Intelligence. This agreement is dubbed as the first global AI safety coalition. The coalition aims to make a proactive approach towards managing AI risk by focusing on transparency, responsibility, and democratic values.

This highlights the urgency of proactive handling of AI threats, considering AI's rapid advancements. It also raises concerns about AI developments not regulated by international agreements, which could lead to safety and ethical issues.

According to a recent report from Moody's, the fintech sector is not just embracing AI—it's setting the pace for its global adoption.

This isn't surprising, given AI's unmatched ability to streamline, optimize, and automate tasks within the sector. It's precisely what you've always known AI could do—revolutionizing operations, slashing costs, and skyrocketing efficiency.

Our Opinion:

This “first global AI safety coalition” alongside the fintech industry's embrace of AI, sets the stage for a future where AI is used responsibly and effectively in the financial world.

Firms must weigh the benefits of operational efficiency, improved customer experiences, and risk mitigation against the challenges associated with costs, potential workforce displacement, and security issues.

As AI adoption in the fintech sector is seemingly becoming inevitable, both the opportunities and challenges it presents should be part of any strategic planning in the services offered by alternative finance providers. Ensuring data security, regulatory compliance, and customer trust will be essential to capitalizing on the potential benefits offered by AI.

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89% of Knowledge Workers Utilizing AI Without Adequate Training and Governance Kolide, the device security company, surveyed 1,500 US-based knowledge workers and revealed that although 89% of them use AI, most businesses did not provide the required governance or training to use this technology correctly.

Despite the pervasive use of AI in the workplace, only 56% of companies educate their employees on its risks.

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- Jordan Hansen
CEO of Cobalt Intelligence (Beyond Banks)