FSB explores AI’s potential to revolutionize finance while spotlighting risks like fraud, data governance and systemic vulnerabilities.
The Financial Stability Board (FSB), an international body that monitors and makes recommendations on the global financial system, published a paper analyzing the implications of artificial intelligence in financial services and how to mitigate potential risks.
On Nov. 14, the FSB released the document titled “The Financial Stability Implications of Artificial Intelligence,” exploring how AI can influence global financial systems and infrastructure.
The FSB recognized that AI offers many benefits, such as enhancing operational efficiency, personalizing products, improving regulatory compliance and providing advanced data analytics. Still, the FSB said that AI also has the potential to “amplify” vulnerabilities in the financial sector.
