Ethics of AI in Finance

Can Algorithms Be Trusted with Your Money?

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Artificial Intelligence (AI) is revolutionizing the financial industry at a pace never seen before.

From algorithmic trading and credit scoring to fraud detection, Al-based systems now dominate money management and investment decisions.

While these technologies hold the promise of efficiency, customization, and better risk management, they also raise serious ethical concerns. This raises the question of whether our financial future should be entrusted to algorithms.

The Rise of Al in Finance

Over the past decade, banks and financial institutions have increasingly turned to Artificial Intelligence. Algorithms are able to scan vast amounts of data within milliseconds, search out patterns, and predict trends, while human minds are incapable of keeping up.

Robotic advisors suggest investments based on an investor's risk tolerance and objectives, while machine-learning applications monitor transactions in real time and flag suspicious activity. Hence, proponents of technology would see the pros of eliminating human errors, reducing costs, and increasing access to financial services.

The Trust Dilemma