AI's role in financial sector evolves
The Financial Markets Authority (FMA) has released research on the adoption of artificial intelligence (AI) in New Zealand’s financial services, covering asset management, banking, financial advice, and insurance.
“We reviewed how AI is currently used and firms' plans for future applications,” said FMA chief economist Stuart Johnson (pictured above).
Balancing AI benefits and risks
Johnson stressed the need for a balanced approach to AI, acknowledging its transformative potential while also noting emerging risks.
“AI is a transformative technology, and application is evolving at pace,” Johnson said. “Our findings emphasise the need for a balanced approach to harness AI’s benefits while addressing governance and risk concerns.”
See LinkedIn post here.
Governance and ethical AI use key focus
The FMA’s research underscored the importance of AI governance, data quality, and ethical use as key factors for safe AI integration in the financial sector.
“Our focus on AI governance and risk management reflects our commitment to ensuring financial innovations are introduced responsibly,” Johnson said.
Roundtable to explore AI further
To continue the discussion, FMA will host a roundtable on Oct. 1 with industry participants to examine how AI and generative AI (GenAI) are being applied in financial services and how risks are being managed.
Read the FMA media release and download the “Understanding Artificial Intelligence in Financial Services Research” PDF here.
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