For some time now, financial firms have been looking at how they can use AI to improve their processes, automate rote functions, and create efficiencies in their operating models. But the industry still has a long way to go before it harnesses the power of this advanced technology. While financial services adoption of AI is still in its early days, it has caught the attention of global regulators. Most recently, Luxembourg’s financial regulator, the CSSF, released a white paper outlining the “opportunities, risks, and recommendations for the financial sector” relating to AI.
The CSSF paper is non-binding (it is not regulation), but marks one of the first times a financial regulator has released such extensive research on the topic. The aim is to provide a foundation for asset managers around the globe to engage on AI, garner a deeper understanding of how to implement it and consider its implications.
This article extracts key considerations of the CSSF paper – the opportunities, risks, and recommendations for asset managers: http://www.finregalert.com
Article by Mehtap Numanoglu Tasiopoulos, Brown Brothers Harriman