Key points are not available for this paper at this time.
Modern financial institutions across the world are increasingly leveraging the significant potential and the immense opportunities associated with artificial intelligence (AI). Considering their many demonstrable benefits, numerous global organizations have already begun to harness Predictive AI for their back-office operations. Despite AI being a rather novel development, it is foreseen to provide substantial savings for financial institutions' operational costs and enhancements of operational effectiveness. It is anticipated that in future, AI will be indispensable for various roles such as risk managers, financial regulators, authorities, etc. In general, AI is seen as being a transformative phenomenon within the financial realm, redesigning business models as well as revising industry standards. The rising number of organizations seeking to leverage this transformative technology's potential have led to various business processes, worker skillsets, or job settings getting reassessed and revamped. Besides this, it has also become imperative for firms to seriously consider AI systems' compute-intensive nature. These systems would sap substantial resources as well as use up a huge amount of space involving the supply chains' sustainability targets. In addition, AI comes with the dangerous potential of destabilizing financial systems, generating fresh 'fat tail risks' or accentuating existent ones because of procyclicality, or the unknown unknown phenomena, etc. This report seeks to outline the roles of AI within the financial realm, i.e., its capabilities of transforming the industry along with its potential downsides.
Chin et al. (Fri,) studied this question.
Synapse has enriched 5 closely related papers on similar clinical questions. Consider them for comparative context: