A recent report by the Alan Turing Institute notes that use of AI in Finance in financial services will impact 4 principal areas – fraud detection; use of chatbots; algorithmic trading and increase in regulatory and policy making. The report makes for a good read and while the first three use cases are credible there is skepticism about the impact AI/ML will have on algorithmic trading. In this post I have included a short summary of the report with an assessment and critique of the 4 areas with supporting links to relevant articles.
BackgroundTargeted Review of Internal Models (TRIM) is a regulation under ECB (European Central Bank) which is designed to bring common understanding and consistency across capital
Summary: New working papers by Bank of International Settlements (BIS) and Financial Stability Board (FSB) conclude that financial institutions are more vulnerable to BigTech companies