Rise of the machines must be monitored, say global finance regulators
London — Replacing bank and insurance workers with machines risks creating a dependency on outside technology companies beyond the reach of regulators, the global Financial Stability Board (FSB) said on Wednesday. The FSB, which co-ordinates financial regulation across the Group of 20 economies (G-20), said in its first report on artificial intelligence (AI) and machine learning that the risks they posed need monitoring. AI and machine learning refer to technology that is replacing traditional methods to assess the creditworthiness of customers, to crunch data, price insurance contracts and spot profitable trades across markets. There are no international regulatory standards for AI and machine learning, but the FSB left open whether new rules were needed. Data on rapidly growing usage of AI is largely unavailable, leaving regulators unsure about the effects of potentially new and unexpected links between markets and banks, the report said. AI could, for example, lead to "nonsustain...
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