AI and machine learning (ML) are playing an ever-growing role in financial markets around the world – and while these new technologies can reduce costs and increase speed for firms and investors, they also come with an element of risk.
Amongst several fascinating presentations at the Eurofiling Innovation Day this week was an interesting demonstration on how XBRL reports can be used as the basis of explainable AI for bankruptcy prediction.
Central banks and national statistical offices have increasingly been looking to big data sets and analytics to provide new insights – but managing data of this magnitude requires new data platforms. This week a Bank for International Settlements (BIS) report breaks down how best to deal with big data. Novel big data sets – such […]
XBRL is now the standard for financial reporting, providing machine-readable data with vastly improved accuracy and quality to regulators worldwide. With significant amounts of structured data increasingly available, how can AI be used to turn that information into insight? While some AI programmes are designed to be able to deal with data that is unstructured, […]
A recent Centre for Finance Technology and Entrepreneurship (CFTE) paper develops a regulatory roadmap for addressing the increasing role of AI in finance, focusing on how human involvement can deal with ‘black box’ issues. The paper identifies three regulatory challenges from AI in finance. Firstly, AI algorithms increase information asymmetries between various users and developers. […]
This month the European Commission launched Europe’s ambitious new data strategy with a flurry of documents and two new consultations. Over the next five years the EU plans to create a single market for data that complements the common economic market ensuring that data should be able to flow across countries and sectors within the […]
As the year draws to a close ITProPortal has taken a stab at predicting how data use will change in 2020. Much of their predictions centre around improvements in AI analysis – which the expansion of structured data around the world will help facilitate. They predict that developments in AI and machine learning will mean patterns across […]
A Bank of England (BoE) report has found that the use of machine learning (ML) is on the rise in financial services. The report is based on a joint survey from BoE and the Financial Conduct Authority in 2019 of 106 firms. The UK economy is increasingly powered by big data, with financial services in particular […]
Maria Mora, Principal Engineer on Artificial Intelligence and XBRL Expert at Fujitsu Laboratories of Europe, demonstrated the exciting work Fujitsu are doing developing explainable AI for finance. Financial services are demanding more advanced AI solutions. They want to apply AI to numerous situations that require high credibility, such as sales predictions, risk management for investment, […]
The UK’s Prudential Regulation Authority (PRA) is working on machine learning techniques to predict bank distress. Using novel data sources, mainly confidential regulatory returns, this still experimental early warning system for predicting bank distress significantly outperformed other models. This development follows the Danish Business Authority’s machine learning-based Early Warning Europe, which uses large data sets from five European countries […]