What is AI Powered Surveillance? | Sheild

 As we know that Artificial Intelligence has become an integral part of Financial Services. For companies looking to increase their value, AI technologies such as machine learning can help improve loan underwriting and reduce financial risk with the help of AI.


You have heard of Financial services and market fraud that are the two words that you wouldn't expect to hear in the context of a technology frontier. Nonetheless, this is the image presented by five of the world's major financial authorities in their recent RFI (Request for Information).

After this we must ask the question that is there any unconscious bias that has inadvertently been built into the models? Indeed, the answers might reveal a darker side of financial transactions, one that hasn't been seen in over two decades, when the FBI raided Enron's headquarters and also how the AI Powered Surveillance is neglected.

Let's look at how implicit bias appears to have sneaked into financial risk assessment algorithms. To begin with, machine learning (ML) is a type of AI that is used in practice. The word was coined to describe the process by which a machine learns to correlate X with Y after being exposed to data that explicitly "says" X = Y hundreds or millions of times. As a result, we may say that implicit bias is now likely integrated into all types of models.

The RFI seeks to determine how deep the bias is and what constitutes a "acceptable rate" of accuracy in financial risk assessment models, which is thought to vary greatly from one financial institution to the next.

We must understand that even in the highly regulated financial services business, there are no established norms or guidelines dictating how AI and machine learning (together with the underlying training data) may be used to assess financial risk.

Therefore with the proposal to regulate the use of AI and machine learning in banking, the EU is holding the torch for the future of all the technologies in finance. Due to their acknowledged inherent bias arising from prior training data, financial risk assessments have been labelled as "high-risk AI systems."

Finally, we must recognize the governing regulations and how Artificial Intelligence and Machine Learning should be used to notify compliance officials to potential market misuse.




Comments

  1. ViAct24 October 2024 at 00:25

    Thanks for sharing such brilliant ideas I really like your blog about Safety Compliance Software for us..

    ReplyDelete

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