In the past twelve months, there have been significant breakthroughs in the development of artificial intelligence (AI) technology. The growing popularisation of Generative AI through tools such as OpenAI’s ChatGPT, Microsoft’s Bing AI Chat, and Google’s Bard AI, has brought AI to the mainstream and is disrupting many industries such as financial services (FS) in the Asia Pacific (AP) region and beyond. There is widespread interest from businesses to embrace these new technologies to achieve a competitive edge, and the vast accessibility of Generative AI has revealed the potential capabilities of the platforms.
While development in Generative AI has offered a glimpse into the potential benefits in business efficiency, simplification, and optimised customer experiences, concerns have been raised to the ethical and trustworthy manner in which these tools are harnessed. From transparency and accuracy issues, to concerns with potential biases and intellectual property, regulators have been required to balance the interest of technological innovation with ensuring the safety of consumers.
On release of our report Trustworthy Use of Artificial Intelligence in Finance in 2022, regulators in the AP region were still in early stages of consulting on and/or implementing AI principles.
In this follow-up report, we further explore risks associated with the use of AI in the FS sector, the current regulatory landscape in AP, and what FS firms may consider in preparation for upcoming legislation and regulation in this space.