The 2024 Conference on Artificial Intelligence & Financial Stability at the U.S. Department of the Treasury sparked a lively debate on the use of artificial intelligence in the financial sector. While Hilary Allen, professor of law at American University, expressed concerns about AI’s limitations and potential risks, Samara Cohen, Chief Investment Officer at BlackRock, highlighted the benefits of AI in financial operations and its positive impact on market modernization. Allen stressed the importance of understanding the operational risks and concentration risks of relying on third-party vendors and cloud providers, as well as the potential for data poisoning by cyber attackers. On the other hand, Cohen explained how AI has revolutionized trading and portfolio management at BlackRock, transforming how data is analyzed and markets are accessed. The debate raises critical questions about the role of AI in finance and the need for monitoring and risk management.
AI in Finance – Boon or Bane?
“A lot of people get confused by the term AI because you hear the term intelligence…But in fact, it’s not intelligent in the way that a human is intelligent,” Hilary Allen said.
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