FRANKFURT (Reuters) – The use of artificial intelligence in finance is still in its infancy, the European Central Bank said on Wednesday, but it will be monitored and in some cases regulated to prevent harm to consumers and ensure the proper functioning of markets. said it was necessary to do so.
The ECB has identified many opportunities in the use of generative AI by banks and other financial institutions, including better information processing, more efficient customer service, and even improved ability to detect cyber threats.
But it also warned of risks such as herd behavior, over-reliance on a limited number of providers and more sophisticated cyber-attacks.
“The introduction of AI across the financial system therefore needs to be carefully monitored as the technology evolves,” the ECB said in an article published as part of its regular financial stability review.
“Furthermore, regulatory approaches may also need to be considered if market failures are identified that cannot be addressed by the current prudential framework.”
The European Union has developed the world's first artificial intelligence regulation that forces general-purpose, high-risk AI systems to comply with specific transparency obligations and EU copyright law.
However, the ECB said so far the implementation of such systems by European financial companies was at an “initial stage”.
The ECB said: “According to market participants, financial institutions in the euro area may delay the implementation of generative AI, taking into account the various risks that have been discussed so far (and) taking into account potential reputational risks. There is,” he said.
(Reporting by Francesco Canepa; Editing by Muralikumar Anantharaman)
