Artificial intelligence (AI) technologies are increasingly being used in a variety of fields, none more so than the financial industry. AI offers great opportunities; it can enable companies to automate manual processes and meet their regulatory requirements at a higher speed with a lower error rate and less effort.
While AI promises to bring greater efficiency to the provision of financial services, it is important to manage the risks. Three principles that come up in this context are responsibility, explainability and transparency. The obligation to comply with rules and responsibilities remains with the management of the company. Therefore, the management board may not just shift responsibility to machines and algorithms. Ultimate responsibility for AI generated outcomes must remain with people.
The complexity of regulations is hard to manage today for financial institutions. The vast amount of unstructured text contains relevant information and can only be accessed through high efforts. AI and especially its sub-discipline Natural Language Processing (NLP) open up a great potential to simplify access, monitoring and the implementation of regulations. In this presentation, first an introduction into basic concepts of AI and NLP will be provided. Afterwards, challenges in today’s regulatory environment are presented and ways how NLP can overcome those will be discussed. Furthermore, tools of AI and NLP will be demonstrated live on relevant data sources.
