Today, Artificial Intelligence (“AI”) is one of the most promising technologies, and different kinds of practical applications, especially in the financial sector, are emerging. This topic attracts a lot of attention, but at the same time, there is still a sense of ambiguity about what kind of technology is hidden behind this term.
The potential benefits that AI can bring are enormous, but these can only be achieved if the fundamentals of this technology and its underlying risks are well understood and an adequate control framework is put in place. In this context, the CSSF has performed a research study in order to better understand what Artificial Intelligence is and the related risks. The result is a document which intends to provide some basic knowledge about Artificial Intelligence, describe the different types of AI and some practical use cases for the financial sector. Furthermore, this study covers the analysis of the main risks associated with AI technology and provides some key recommendations to take into account when implementing AI inside a business process. Given the increasing adoption of AI in the financial sector and the relative lack of practical guidance from a risk perspective, the CSSF has decided to share the results of this study with the public, for the benefit of the financial sector.
This document is published in the form of a “white paper” and has no binding value vis-à-vis the supervised institutions.
Nevertheless, it provides the foundations for a constructive dialogue with all the stakeholders of the financial sector for a deeper understanding of the practical implementations of AI technology and its implications.
The author of this article is solely responsible for the content published.