Reflecting the growing focus on and fears about fintech, the Financial Stability Board today expanded on its current fintech principles and released a report on the potential financial-stability impact of growing financial-industry and regulatory reliance on artificial intelligence (AI) and machine learning (ML). This FedFin report assesses the FSB’s key concerns and what it recommends be done about them not only with regard to use of AI and ML in areas such as insurance contracts, settlement, and underwriting, but also as the “regtech” field advances and regulators or companies rely on AI and ML in areas such as AML compliance.
The full report is available to retainer clients. To find out how you can sign up for the service, click here.