Treasury Secretary Janet Yellen discussed the advantages and dangers of artificial intelligence in the financial services sector during a conference on AI and financial stability. Yellen emphasised the positive impacts of AI on forecasting, portfolio management, fraud detection, and customer service, while cautioning against potential risks.
Treasury Secretary Janet Yellen addressed the potential benefits and risks of artificial intelligence (AI) in the financial services industry during a keynote speech at a recent conference on AI and financial stability. Yellen highlighted that AI can significantly enhance the financial system by supporting forecasting, portfolio management, fraud detection, and customer service automation.
Yellen emphasized the existing use of AI’s predictive capabilities to improve forecasting and portfolio management, noting that AI’s anomaly detection helps combat fraud and illicit finance. She mentioned that many customer support services within the financial sector have already been automated through AI, leading to increased efficiency, accuracy, and accessibility.
However, Yellen warned that the industry must remain vigilant regarding the potential risks associated with AI, although specific risks were not detailed in her speech. The discussion underscores the dual nature of AI in finance—offering substantial advancements while presenting new challenges.
