Fintech

Why financial services face huge risks from AI

Although AI is seen as an opportunity to tap new investment and client opportunities, it could also be a minefield if the safeguards are insufficient, a new study suggests.

It's not just the World Economic Forum WEF and central bankers that are worried about the potential threats to financial stability from artificial intelligence. Some within the investment industry are too. 

Last week, the WEF, which organises the annual high-level Davos conference of world leaders, issued a paper that starkly warned how AI would create “a fundamentally different kind of financial system” that could undermine the traditional framework of markets.

If companies and regulators don’t get on top of the technology, it concluded, investors will be put at risk. 

Paul Sandhu, head of multi-assets quant solutions and client...

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