As financial institutions look to increase their adoption of artificial intelligence (AI), they need to ensure they are able to trust the technology. These AI tools can gain access to sensitive data and if the correct measures are not implemented, can cause a myriad of problems.
This is where ethical AI comes in. This is an AI solution that meets a series of guidelines to ensure there is no algorithmic bias, it has accountability, is transparent, protects privacy and more.
FinTech Global recently spoke to Dr. Aitor Muguruza, director of AI and data science at Kaiju, to get his thoughts on the importance of ethical AI in financial services.
During the discussion, one of the areas Muguruza highlighted was the potential ethical concerns with the use of AI. He said, “The biggest concern is creating bias in your decision making process that leads to discrimination to some social groups.”
Another big issue firms could experience with AI is a lack of transparency and accountability. For instance, a firm could have bias in their AI and is discriminating against people, but if they lack transparency or accountability, that bias is likely to go unnoticed.
Some of the other potential concerns Muguruza pointed to were privacy, security leaks and malicious use cases, such as market manipulation.
One of the other areas Muguruza touched upon during the interview was the ethical concerns of using generative AI. This technology has garnered a lot of hype over the past couple of years and firms across the financial services ecosystem are exploring how they can make the most of it. However, while it has some impressive capabilities, there are still some potential concerns.
Muguruza explained, “Generative AI is a very powerful tool in the sense that it does everything, but at the same time, doesn’t do anything. Its goal is to sound as real as a human, but there is no real reasoning mechanism.
“If you ask what the weather is going to be tomorrow, it is going to answer with something that sounds reasonable but there is no thinking process around checking the clouds and the projection on how the clouds are going to move.
“The main concern is we are creating a lot of misleading and potentially harmful content which is founded with no decision making process whatsoever. ”
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