Dark Tech: How AAI and Malicious AI Solutions for Fraudsters Are Evolving and How We Can Stop Them
This session explored the integration of AI in financial services, emphasising the need for proper regulation, education, and ethical considerations to ensure the technology serves society equitably.
1. AI literacy and education
- Financial literacy is essential, but AI literacy is equally important, with a focus on understanding minimum standards for AI literacy. Education on AI should span across institutions, from universities to financial organizations, including regulators.
- The goal is to prepare individuals across all organisational functions to handle AI, ensuring it benefits not just developers but also non-technical teams.
2. Regulation and approach Vvriances
- There are different regulatory approaches worldwide, such as Europe's regulatory framework (EU AI Act) and Singapore's pragmatic approach (MindForge), aiming to balance AI risks with innovation and financial inclusion.
- The discussion highlighted the trade-off between fostering innovation and guaranteeing system stability, emphasising the importance of inclusive regulations that accommodate smaller players in the market.
3. AI’s risk and benefit management
- Careful, transparent progress is necessary to avoid unintended consequences such as financial exclusion or unregulated risks. Regulatory sandboxes and transparent AI testing (e.g., Veritas project) are critical to ensuring fairness and addressing biases.
- The importance of a quantitative approach to risk management was stressed to measure AI’s impact and control potential harm.
4. AI to prevent financial crime
- AI can be used to prevent financial crime by detecting suspicious activity before it enters the system, though the effectiveness depends on how AI systems are implemented and the data used. The challenge lies in balancing AI’s power with the need for resources and processing capabilities.
The session underscored the importance of creating a transparent, inclusive, and well-regulated environment for AI in financial services. By ensuring broad AI literacy and responsible application, the industry can harness AI’s potential while mitigating risks like bias and financial exclusion.
Speakers:
- Prof. Andreas Chai, Director, Financial Crime Investigation and Compliance Academy, Griffith Business School
- Prof. Ernest Foo, Professor, Griffith University
- Shawn Hunter, Industry Fellow (APEC) & Director, Inclusive Growth Programs, Griffith Asia Institute
Moderator:
- Elena Maran, Global Head of Financial Services and Responsible AI, Modulos AG