Managing risks: ethical consideration in AI finance

AI's implementation in finance heralds unprecedented advantages, optimising operations, and enabling data-driven decision-making. It streamlines transactions, enhances risk assessment, and tailors personalised investment strategies, revolutionising the industry's efficiency. 

Yet, ethical quandaries and inherent risks persist. AI's opacity and susceptibility to biases pose ethical dilemmas, potentially exacerbating financial disparities. Moreover, reliance on AI systems introduces risks of errors or algorithmic malfunctions, impacting market stability and investment outcomes. Balancing the transformative potential of AI with ethical considerations and risk management is vital for responsible financial innovation, necessitating comprehensive frameworks to ensure AI aligns with ethical principles and regulatory compliance, safeguarding financial integrity and consumer trust. 

In this session, Edward Achtner, head of Office of Applied Artificial Intelligence (OAAI) at HSBC explore strategies to navigate AI hallucination, striking a balance between human decision-making and AI to ensure corporate compliance and uphold a robust code of conduct. Leveraging HSBC's industry-leading practices as case studies, he provides invaluable insights into this evolving landscape, offering participants a deeper understanding of this crucial subject.