Zero Error Approach to AI in Financial Services Deemed Impossible
According to Tom Mutton, director of digital currency at the Bank of England, it is impossible to achieve a "zero error approach" to artificial intelligence in financial services.
It is going to be impossible to get to a zero error approach here.
Mutton emphasized the importance of responding to disruptions and minimizing their impact, rather than striving for an unattainable zero-error goal. He suggested striking a balance between prevention, detection, and remediation.
David Geale, digital finance boss at the FCA, acknowledged the risks associated with AI but also highlighted its potential benefits, such as improving financial advice. The FCA is aware of the risks and expects individuals to report them to the regulator as they arise.
Author's Summary
AI in financial services is deemed imperfect.
- Key challenges: impossible zero error approach, disruption response, and risk management.
- Opportunities: improved financial advice and regulator awareness.