Last month I wrote about the challenges of regulating machine learning, but will AI highlight the different market structure between equities and FX – something that is a long running theme of this column? The value of AI is unarguable, but it strikes me that it will be put to different uses in FX than, for example, equities – and that is because of the different market structures of each instrument. One use is revolutionary, the other? Well we’re kind of used to it…
Tag: machine learning
The Financial Stability Board (FSB) has published a report that considers the financial stability implications of the growing use of artificial intelligence (AI) and machine learning in financial services.
It notes that financial institutions are increasingly using AI and machine learning in a range of applications across the financial system including to assess credit quality, to price and market insurance contracts and to automate client interactions. The lack of interpretability or auditability of AI and machine learning methods could become a macro-level risk, FSB warns.
The current buzzwords are “AI” and ‘machine learning” – barely a day goes by without receiving a missive about yet another “ground-breaking” initiative, most of which appear to be nothing new, it’s just the PR managed to crowbar the words in there. Without doubt, though, firms are looking at this technology and, in some cases actually deploying it, which begs the question – who do we blame if the machine goes rogue? And who is the John Connor of FX?