Financial industry grappling with AI's gifts and perils, executives say
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The spread of artificial intelligence-based systems offers big opportunities for financial services firms, executives say, but asset managers also face higher stakes than other consumer-facing businesses because they manage sensitive information.
For example, AI systems could be better than humans at explaining to clients why they arrived at recommendations like portfolio allocations or lending decisions, said Zack Kass, a former head of business partnerships at OpenAI. People, he said, are not good at explaining subconscious biases that could affect such decisions.
"AI should make that a ton better. The problem is, if we're not careful, it will just make it worse," Kass said at an investor conference staged by Morningstar this week in Chicago where the rise of AI systems was a frequent topic of discussion.
Executives in the financial industry recognize the potential of AI in various areas. For example, AI systems could be used to develop code, potentially saving time and expenses on tasks like compliance reports . AI systems may also be better than humans at explaining to clients why certain recommendations, such as portfolio allocations or lending decisions, were made
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