AIR - Alliance for Innovative Regulation’s Post

Chapter 3 of the ‘Global Financial Stability Report, 2024’ published by the International Monetary Fund #IMF. deals with implications for #CapitalMarkets due to the advances in #AI. It is a very useful read for investors, AI-driven digital solutions designers, and users of #AIDrivenTools for investment decisions and transactions in primary and secondary capital markets. The full report is available at https://lnkd.in/dGXdjp2t The report has cautioned about various associated #Risks, particularly the high risks of #MarketConcentration both within the financial industry as well as critical third-party service providers of #Cloud and #AIServices #Artificial intelligence (AI) has the potential to reshape the world and transform industries, including financial services. This chapter focuses on the use of #AI and #GenAI in capital markets, which may see deep changes in market structure changes from network effects and increased speed of market functioning. #FinancialServices are well poised to take advantage of recent advances in AI given the industry’s long-standing focus on data collection and analysis and early adoption of techniques such as machine learning (#ML). Recent surveys of financial institutions reported that a vast majority of respondents expect a significant expansion of the use of #GenAI-driven models (IIF and Ernst & Young 2023), and more than half of investment managers said that they planned to use GenAI in the future (Mercer Investments 2024). Hence, it is important to understand these developments' potential financial stability implications and ensure regulators are ready for these changes. Further adoption of #AI may contribute positively to financial stability, and can provide clear benefits to financial institutions, such as efficiency Fin improvements and higher productivity (Boukherouaa and others 2021), refined portfolio investing frameworks (Park and others 2023), improved return forecasting (Chen, Kelly, and Xiu 2023), and quantification of crash risks (Swinkels and Hoogteijling 2022). There are also AI applications benefiting SupTech and RegTech.2 However, AI could also introduce new forms of #FinancialStabilityRisks and accelerate well-established financial stability concerns such as leverage, liquidity strains, and interconnectedness. This chapter considers and finds indicative evidence for four broad categories of potential risks, which could transmit stress to the real economy through loss of market confidence, 

Can AI regulation be a competitive advantage? 🤔 #IBMPartner   This is the inspiring view of Bahadir Yilmaz, Chief Analytics Officer at ING, following insights from John Duigenan, General Manager Global Financial Services Industry at IBM. John will be speaking about the EU AI Act tomorrow on The Exchange Stage at 14:05 at Money20/20Europe, and we were lucky enough to have him share highlights in this video.   We also covered: 💡 Examples of generative AI in financial services already 🤝 Steps taken by banks to protect themselves and their clients ✅ Best practices for data and AI governance 🤔 Expectations on AI adoption as it evolves   Catch more from IBM at BR10 on the Balcony, for a series of roundtables and demos. Check the out the conference agenda for keynotes.    Do you believe AI regulation will help or hinder banking business?    Thanks Marc Smulders Ana Paula De Jesus Assis Shanker Ramamurthy Saket Sinha Tony Davis J.D. (John David) Penner, CTP (CD) D. Matthew Stremel Paul Béjard Vera Kukic Jean-Philippe Desbiolles Pankaj Kumar Ismael Casado Fregison Suliva Simon W. Prakash Pattni Mary Ellen Higgins Robert Mercorella Kamini Belday Anthony Terrafirma Carson Masterson, Nicole Park, Marc Minguella, Eveline de Buyzer Gregor Hastings Gaëlle DUSSUTOUR-TAN Tineke Mertens Miguel Gimenez de Castro Brandi Boatner Alexandra Edwards Charlotte Elsy   #IBM #Money2020Europe #fintech #AI #business #bankingindustry #technology #watsonx

What a great conversation Gemma Godfrey moderated today with Bahadir Yilmaz from ING and IBM's John Duigenan at #Money2020Europe. Watch to learn more about how robust governance and trustworthy AI can be a competitive advantage for banks and other financial institutions! Thank you for joining us Bahadir Yilmaz and Marc Smulders! #bankingindustry #ai #watsonx

Why Only 20% of Your Data is Valuable One factor to apprehensive #AIadoption is the overwhelm organisations feel when approaching their data, especially those that are not yet digital first. While attending Finextra’s inaugural #NextGenAI event in London, Jonathan Ede, Director of Data Technology at CACI Ltd, joined the #FinextraTV studio to discuss his belief that only 20% of data is valuable. This in mind, he explains, enables organisations to approach #ArtificialIntelligence and #digitization much more effectively and efficiently, whilst listing the pillars of #AI: #strategy, #data, and #integration. https://lnkd.in/eq_4yrC7 #fintech #finance #financialservices #financialinstitutions #banks #banking #technology #innovation #future #trends #digitaltransformation #automation #GenAI #generativeAI #legacysystems #analytics #business #strategy #datawarehousing #AIintegration #LLM 

We are delighted to announce that Rinesh Patel, Global Head of Financial Services at Snowflake, will be one of our speakers at Evident’s inaugural European Symposium in London on June 19. The Evident AI Symposium brings senior AI leaders from across the banking sector together to cut through the hype, drive forward a global conversation around the realities of AI adoption, and shed light on emerging best practices, grounded in data from the Evident AI Index. For our first European gathering, we’re zeroing in on the theme of: Accelerating Outcomes: how are banks delivering value from AI now? In 2023, we saw investment pour into AI across the banking sector: strategies were set. Centralised AI teams were established. Gen AI use cases were ideated and prioritised. In 2024, it’s all about delivering value. Over the course of the day we’ll explore: - The leading use cases: How are organisations integrating AI to create value now? - The next frontier: What do leading investors and innovators think will shape the future of financial services? - The quantum horizon: How will quantum technologies affect banks? Find out more about the Symposium and register your interest here: https://lnkd.in/ex5KWFSg To keep up-to-date with the latest Symposium announcements, sign up to our fortnightly newsletter The Brief here: https://lnkd.in/eBPtFKB8 #evident #ai #artificialintelligence #banking #finance

Let's wrap up the Key Takeaways from Satori Analytics "From AI to ROI" series with an engaging discussion led by Elena Chatzimichali, PhD, Senior AI & Data Science Manager at Satori, where experts from the financial sector shared key insights and explored opportunities for further digital innovation. 💡George Nasoulis, GM and Group CDO at Piraeus, emphasized the impressive results achieved by combining GenAI and Machine Learning in customer interactions: "We've already integrated GenAI and ML applications with our customer interactions, with immense productivity gains ranging from 75% to 140%." 💡Konstantinos Tsiptsis, Assistant GM Business Analytics & CVM at Eurobank, discussed the development of a recommendation engine in collaboration with Satori, utilizing #GenAI.  "In banking, AI is not a choice, it's a necessity. It is the foundation of future customer engagement and operational efficiency." 💡Kalogeropoulos George, Group COO at doValue, shared that after two years of preparation, the company is ready to launch its digital platform, aimed at empowering loan borrowers and offering more personalized services. "AI will help us unlock the next wave of financial services, where automation meets human intuition to deliver exceptional results." As we bring our post-event series to a close, we’d like to thank all our keynote speakers and panelists for their valuable contributions to the "From AI to ROI" event. Stay tuned for more exciting updates as Satori Analytics and AI unite for an important cause next week! #FromAItoROI #SatoriAnalytics #ML #AI

Trivest Partners VP, Yan Levinski joins our panel of finance leaders on April 2nd. Yan will discuss how AI is driving innovation in Finance, Banking, and Capital Markets alongside fellow experts Bjorn Austraat and Adam Aldrich. Accelerating Growth with AI: Transformation for Finance, Banking and Capital Markets Discover how AI is reshaping the financial landscape. This webinar will delve into cutting-edge strategies to enhance operational efficiency, drive innovation, and gain a competitive edge through AI. Key Takeaways: Competitive Insights: Uncover emerging AI trends, best-in-class use cases, and potential market disruptions to inform strategic decision-making. Efficiency Gains: Optimize processes, reduce operational costs, and achieve superior efficiency through strategic AI implementation. Transformative Opportunities: Explore how AI solutions create new value propositions, business models, and address industry-specific challenges. Don’t miss this important conversation moderated by Jared Slomack, SVP of Client Solutions at FROM. REGISTER NOW: https://lnkd.in/dYi9zQnV #ArtificialIntelligence #AIinFinance #Management #digitaltransformation #customerexperience

What an Interesting detail: The document, titled "the strategy of conquest," Harvard Economics by Marcin Dziubiński, Sanjeev Goyal & David Minarsch, examines conflict dynamics and the impact of technology and resources in multi-actor scenarios. their research extends classical two-party models of war to include complex networks of interconnected kingdoms. the authors analyze how resource allocation, technology, and network structure influence rulers' decisions to engage in or avoid conflict. the work delves into factors such as "rich rewarding" and "poor rewarding" technologies, which dictate whether it is advantageous for powerful or weaker rulers to initiate warfare. link here: https://lnkd.in/gmsYhPWS Ai connection in today’s world this analysis is particularly relevant when connected to #fintech and #banking sectors, where #ai technologies are playing an increasingly crucial role in strategic decision-making. in today's financial landscape, ai can analyze complex networks of financial institutions, assess risks, and predict market outcomes, much like the "contiguity networks" discussed in the paper. ai-powered models, using data on technological capacity, resources, and global alliances, help financial institutions optimize decision-making in interconnected, fast-changing markets. additionally, ai can be used to model and assess #riskmanagement strategies, preventing financial crises and promoting stability, much like conflict resolution strategies in the paper. #strategicdecisionmaking #financialnetworks #marketprediction At day one, we leverage these principles to guide industries, particularly in #finance, #banking, and #fintech, through digital transformation. by helping clients optimize resource allocation, adapt advanced technologies, and build resilient networks, we create sustainable paths for growth. for financial institutions seeking to expand or fortify their market presence, day one applies ai-driven solutions that predict trends, improve decision-making, and foster digital ecosystems that act as "buffer states," reducing vulnerabilities and supporting operational stability. this approach ensures that our clients in #finance and #fintech can efficiently conquer new markets, secure competitive advantages, and maintain strongholds in their current sectors. #digitaltransformation #marketexpansion #financialstability #riskmanagement #aiindigital

Amazing highlights on how technology, resource allocation, and network structure influence decisions in conflict scenarios, extending beyond traditional two-party models. this approach is highly relevant to today’s #fintech and #banking sectors, where understanding complex networks and optimizing decision-making can drive stability and growth. #ai #strategy #digitaltransformation #riskmanagement

I was interviewed by Finextra about data, AI and developing strategies to support your AI goals. “Only 20% of your data is valuable”. This might not be an entirely accurate statement. However, what I’m try to convey is that most technology projects fail because we try and think about the data as a whole, rather than focus on our most valuable data. CACI Ltd