Artificial intelligence in financial market: Bank of Russia’s consultation paper
Companies have been extensively implementing artificial intelligence (AI) in their business processes. This will transform both individual operations and the entire market. The Bank of Russia prepared its consultation paper to discuss how AI could be used in finance, what risks it might involve, how its use is regulated globally, and what approach could be chosen in the Russian financial market.
According to the authors, generative AI is becoming increasingly popular. It can create new content, including texts, images, audios and videos, as requested by users. This technology can reduce costs, accelerate data processing, and be applied in assessing customers’ solvency, investment consulting, anti-fraud solutions, and other areas. However, companies should take into account risks that might be associated with using AI, including technology, economic, ethical and cyber security risks.
The authors believe it essential to promote conditions for the advancement of AI in the financial market considering the risk-based principle of its regulation. The Bank of Russia follows a technology-neutral approach to its regulation enabling market participants to deploy innovations and develop AI.
The Bank of Russia does not consider it necessary to promptly draft special rules for using AI systems by financial institutions right now, is ready to take part in overseeing particular projects in this area and analysing AI-related risks, and supports the exchange of best practices among companies.
Please send your feedback and suggestions on the consultation paper at email@example.com through 15 December 2023.