Lesson 1 - GEN AI in finance Flashcards
what’s the process for Gen AI
it’s a process that uses artificial intelligence to respond to a user’s prompt with generated content
what’s the positive impact on the finance industry
algorithmic trading, automated research, AI chatbots, fraud detection
what risk does gen AI pose
risk of data breaches and financial misconduct as AI tools can give people with malicious intent an advantage
limited public understanding of AI makes it challenging for companies to explain their implementation
how can GEN AI be employed responsibly?
collaboration between technology, legal and compliance teams - utilize resources, internal historical data, and expertise to develop effective AI models.
what’s the effect of GEN AI on finance roles
significant shift in Skill set from emphasis on soft skills and transferable skills (communication, team-building, interpersonal for client relationship management)
what’s the negative effect of GEN AI’s emphasis on soft skills
employees will lack the technical depth and dilution of expertise as people become more reliant on GEN AI as more than 54% of jobs in the banking sector have a higher potential for automation and 12% could be augmented by AI leading to job displacement across the finance industry
Overall how can we balance the use of GEN AI in the finance industry
utilize GEN AI in conjunction with our work to support our research and responsibilities but not to replace us, as it’s difficult to replace the human touch with GEN AI.
why might GEN AI not replace the whole finance industry
it’s difficult to replicate the trust level clients have with humans with GEN AI. there’s still a level of mistrust between humans and robots, nothing can relace the comfort of human interaction
how can smaller companies reduce the gap in their services to the level of big companies that can use their customized gen AI
they can reduce the gap in their services as gen AI can make them more efficient but smaller companies may be reliant on government grants and partnerships with GEN AI companies
what’s an example of a company with breached data privacy policies and how can gen AI help to solve it and what did the company learn from that
Meta had data privacy breaches back in 2021
what’s quantitative/algorithmic trading
utilizing algorithms to execute trades at a faster and more efficient level compared to human trade. using historical data
what are some data privacy policies a company can implement
finding + deleting sensitive data that is no longer in need.
getting consumer consent in storing data - cultivating trust with customers - apple losing 10 billion but having features where customers can not give permission for apps to access their data
user protection measures - google on limiting and giving the user the permission on other apps getting access to personal information
Data privacy and security policies must denote clarity, inclusiveness and well-defined procedures, rules and methods for regulating access to corporate systems and applications. A good policy protects customer, employee and third-party data.
