IMF report identifies future challenges of Generative AI in the financial sector

IMF

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The International Monetary Fund (IMF) pointed out the increasing risks of Generative AI in the financial industry. Indeed, while guidelines governing the use of AI in the financial services sector continue to evolve, some regulators have highlighted that existing legal frameworks already address many of the risks associated with the development and use of Generative AI.

In this case, the IMF report warns that data privacy and cybersecurity are among the main risks that arise in the context of Generative AI. And what he has indicated can help to participate in the actions that companies must take when developing the technology or implementing it in financial services.

IMF report highlights the economic implications of Generative AI in the financial field

To all this, the authors of the report, Ghiath Shabsigh and El Bachir Boukherouaa, warn about the dangers of the latest AI tools in the financial world.

According to the report, the authors point out that generative AI systems take online amounts of data, raising concerns about privacy violations. Likewise, the ability of systems to generate new content implies that they could produce plausible but inaccurate information.

In fact, the report states: “Publicly available systems pose significant privacy challenges for financial institutions that want to incorporate their capabilities into their operations. Therefore, this automation raises the possibility of leaking sensitive financial data and personal information provided.

The report itself warns that these issues could undermine public trust if Generative AI is implemented irresponsibly in finance. For example, chatbots could provide erroneous financial advice.

Confronting the threat: The need for human oversight and regulation in the era of Generative AI

In the same vein, Ghiath Shabsigh and El Bachir Boukherouaa emphasize that cybersecurity is another concern, as Generative AI could break out to create more sophisticated phishing attempts.

Current Generative AI models are increasingly subject to attack. These attacks are based on the development of carefully designed sets of instructions to circumvent the rules.IMF

Therefore, to reduce the risks, the authors recommend:

  • Requires human supervision of Artificial Intelligence systems.
  • Improve the applicability of AI decision-making.
  • Strengthen regulatory capacity and promote international collaboration in AI governance.

Finally, the authors recognize the potential of Generative AI. However, they emphasize the need for a cautious approach, particularly in the finance sector.

I say goodbye with this phrase from Chris Duffey: “The only limit to AI is the human imagination.”