December 2024
Article by Khyati Chauhan, Senior Associate, Research & Advisory, GFTN
The AI boom is on everybody’s minds — regulators, policymakers, entrepreneurs, banks, and so on, as the technology has spread into every corner of society. Yet, consensus is broad that we have yet to see the true value of AI in financial services, especially in investment.
This was among the major themes at the Singapore FinTech Festival 2024, in November 2024, which explored the impact of AI on financial service, as well as issues surrounding central bank digital currencies.
Among participants, Kfir Godrich of BlackRock noted the emerging broad consensus. However, AI-related productivity gains are occurring in crucial coding and software development. Shelley McKinley of GitHub revealed that her organization has seen an increase of 55% in task completion with its AI tool, GitHub Copilot. McKinley also highlighted widespread adoption of Generative AI (GenAI) tools, with millions of users — including teachers, students, and open-source maintainers — leveraging these technologies to enhance productivity.
One of the concerns raised in almost all the discussions involves the AI regulatory framework. There are different approaches to navigating the challenge of adoption of GenAI in financial services. For example, Singapore is taking a collaborative approach with industry consortiums, such as Project MindForge, to build mutual understanding of the risks associated with GenAI and its responsible use in financial services. This was shared by Chia Der Jiun, Managing Director of the Monetary Authority of Singapore. Singapore’s focus is on understanding risks throughout the AI lifecycle, from data collection and governance to model development and deployment. He highlighted key risks such as explainability, accuracy, and prompt injection attacks.
Read our report for more insights and know what leaders are saying about GenAI.
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