Media365
The use of artificial intelligence (AI) is growing exponentially in the financial services industry, driven by demand in areas such as workflow automation and sustainable investment. While AI has the potential to offer significant analytical capacity and productivity gains, practitioners should establish a framework for proper technology governance, according to CFA Institute.
CFA Institute, a global, non-profit professional organisation for chartered financial analysts (CFAs) that promotes ethical conduct, education and professional excellence within the investment industry, notes that many financial professionals are concerned with issues such as data privacy, algorithmic bias, transparency, accountability and the potential for misinterpretation of information.
To harness the potential of AI while managing these risks, CFA Institute believes a combination of AI and human intelligence is key to delivering better results in the investment sector.
“There’s nothing like human oversight,” says Mary Leung, CFA and senior adviser, research and advocacy for Asia-Pacific at CFA Institute. “Ultimately, that’s how we build trust. It is important to maintain relationships with clients and regulators. Having a human in the loop for all high-impact and subjective decisions is key.”
A recent report by the Hong Kong Monetary Authority found that 75 per cent of the 55 financial institutions surveyed had implemented at least one generative AI use case, or were currently piloting and designing use cases and exploring potential investment areas. This ratio is expected to increase to 87 per cent within the next three to five years, according to the report.
