Artificial Intelligence in the world of finance - benefits, risks and prospects

YEREVAN, January 31. /ARKA/. Technology and finances, visualization and robots, data processing and cybercrime - these concepts have entered the lives of many people bringing with them both benefits and risks.

All these issues were in the focus of a panel discussion "Artificial Intelligence for Stable Finance: Challenges and Opportunities" held as part of the "Amundi-Acba Economic Forum 2024". 

Not waiting for help, but helping to develop

Marie Briere, Head of Investor Literacy and Academic Collaboration at the Amundi Institute, believes that financial institutions should not wait for the development of technologies, but should cooperate with their developers at early stages and help technology progress.

She noted that this kind of partnership of technology companies and supervisory bodies of financial organizations to discuss tasks and understand risks helps to grow and learn. 

Central Bank of Armenia – initiating or responding? 

Garegin Gevorgyan, Director of the Financial Stability Department at the Central Bank of Armenia, when asked about the Armenian regulator's attitude to innovative changes in the digital sphere said:

"The Central Bank is not responsible for this industry, but at the same time we promote growth, we strive for Armenia to develop. Our main functions are to ensure price stability, and all our decisions are conditioned by the scope of our authority. When we see that technology transforms the economy, we don't take proactive steps".

He clarified that such an approach is peculiar not only to Armenia: practically all regulatory bodies around the world act in the same way.

"We try to see development, after which we enforce regulations. We are conservative: we observe the developments, encourage banks and other financial organizations to try new technologies, but at the same time to realize whether these technologies are necessary. Only after that we present our position," Gevorgyan said. 

AI, business and the financial sector 

Armen Khrlobyan, an independent expert, scientist and investor, believes that there are serious ethical and data secrecy issues in the relationship between AI and the workforce.

"In particular, when data is open, one country can easily analyze another country's data," he says.

On the other hand, he says, automated technology is able to do work in complex environments where humans cannot work or such work carries risks.

"But at the same time, the issue of data secrecy comes first, and replacement of labor force comes second," Khrlobyan added.

Garegin Gevorgyan, in the context of the need for tough measures against cybercriminals using AI-based tools, noted that "the struggle between sword and shield" has lasted throughout history and will be eternal.

"In any field, including financial, we see systems that criminals develop, but there are also protection mechanisms. We need to be prepared to protect ourselves and we need to be aware of the developments that are happening in cybercrime. We need to form capabilities, systems, processes, and have employees with appropriate qualifications," he said.

Among the measures taken by the Central Bank, Gevorgyan mentioned a structure for developing cybersecurity capabilities in Armenia. "We are trying to ensure that the Armenian society is open, can use all the opportunities of the Internet and the digital world and at the same time be protected from cyberattacks," he emphasized. 

What will be the overall landscape of the financial sphere in 10 years? 

Marie Brière: "Robo-consulting will develop in the financial sector. People are not used to it yet, but if we imagine a world in which a robot will have a fully human appearance, talk like a human, give appropriate answers to questions, then we will see serious advances in human-robot relations. We need to get used to the fact that we will have a virtual assistant who will help us with a lot of issues."

Armen Khrlobyan: "A digital assistant can have a physical embodiment. But there is also an apocalyptic vision - robots will replace most office workers, which will bring a major change in the labor market. On the other hand, the AI assistant can be of great help in such a field of medicine as radiology."

Garegin Gevorgyan: "AI is not a breakthrough or radical development, but just an accumulation of capabilities that will allow us to do more work. We have become lazy, we don't read more books, perhaps we will lose our creative capabilities. But, on the other hand, I am sure that "mind bikes" should be used for the purpose of making our lives easier, since the basic and ultimate goal is human happiness." -0-