A human rights‐based approach to AI in fintech

The growing use of innovative digital technologies, particularly artificial intelligence, in the design, delivery, and improvement of financial products and services (commonly referred to as fintech) has raised concerns about potential risks to individuals' fundamental rights and freedoms. AI systems used in fintech may reinforce discrimination and financial exclusion due to biased algorithms and flawed data. They may also lack sufficient transparency, explainability, and contestability, which could lead to harms such as breaches of privacy rights. The legal landscape for these intersecting issues is uneven. While fintech companies are subject to some regulatory oversight, gaps remain, especially because many firms operate outside traditional banking regulations, and state oversight of AI is still in its infancy. In this context, the article's contribution is threefold. First, it analyzes the potential adverse societal impacts of the use of AI in fintech through a human rights lens. Second, it maps the law and soft law applicable to the use of AI in fintech and identifies gaps, asking whether the business and human rights framework helps bridge some of the identified gaps. Answering this in the affirmative, its third contribution is to recommend the adoption of a human rights‐based approach for understanding and addressing the implications of AI across the fintech ecosystem.