LONDON : Applying artificial intelligence to financial services must go hand-in-hand with better fraud prevention and resilience to hacking and outages, Britain's Financial Conduct Authority was expected to say on Wednesday.
AI's use can benefit markets, such as cutting prices for consumers, but also cause imbalances if"unleashed unfettered", Rathi will say. "We will take a robust line on this – full support for beneficial innovation alongside proportionate protections. We will remain super vigilant on how firms mitigate cyber-risks and fraud given the likelihood that these will rise."
"This surge in intraday short-term trading across markets and asset classes suggests investors are increasingly turning to highly automated strategies," he will say.