The FSB invites academic paper submissions for a session on the topic of ‘AI in Finance and its Financial Stability Implications’ at the 2024 Annual Meeting of CEBRA.
The meeting is jointly organised by the Deutsche Bundesbank and the Leibniz Institute for Financial Research “Sustainable Architecture for Finance in Europe” (SAFE) and will take place in person from 28 to 30 August 2024 in Frankfurt am Main, Germany.
Artificial Intelligence (AI)-driven technologies could profoundly influence how financial institutions operate and manage risks. The more efficient processing of information may contribute to a more efficient financial system, while AI’s application to RegTech/SupTech could improve regulatory compliance and supervisory effectiveness. However, the use of AI could also entail financial stability risks – for example, from market concentration, network effects and scalability that may give rise to new third-party dependencies. The application of AI could result in new and unexpected forms of interconnectedness and lead to herding behaviour, while the lack of explainability and auditability of AI models could also result in unintended consequences.
In recent years, there have been notable AI-related developments such as the adoption of generative AI. Given its ability to create new content and associated potential benefits, financial institutions and their service providers are exploring the use of generative AI for businesses such as customer support, fraud detection, market analysis and internal document processing and software development. The rapid evolution of AI models used by financial institutions and their service providers raises questions about the long-term implications for financial stability.
Authors are invited to submit papers that analyse and provide insights on use cases of AI in finance from the perspective of potential benefits and risks. Of particular interest are papers that examine the extent to which, and modalities through which, the broader use of AI may have an effect on financial stability, including potential mitigants available to address associated risks.
Papers should be submitted on the CEBRA website by 10 March 2024.
