What's next for financial services in AI and tech

The roles of artificial intelligence and technology in this sector are rapidly expanding, offering both opportunities and risks

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Q We are just seeing the tip of the iceberg for using artificial intelligence (AI) in financial services. How much more can AI be utilized in the future, and what are some guard rails and precautions that will need to be taken into account?

BEN TAN: There is great potential for AI to do more than just automate tasks to improve efficiency. In the future, it could be used to predict customer trends and risks in life and health insurance, as well as support financial representatives in delivering hyper-personalized financial advice to customers. Although the use of AI brings about many benefits, the technology itself and guidelines on its use are still evolving. We must continue to guard against biases in algorithms, protect sensitive financial data, and develop robust governance frameworks to protect customer interests. By balancing innovation with these precautions, financial services can leverage AI responsibly and effectively.

SHAYAN HAZIR: Asset tokenization, AI and quantum will undoubtedly unlock powerful capabilities for banks in areas including risk mitigation, fraud detection and algorithmic trading. But we need a "step back" moment.

The focus shouldn't be only on making current products and services more efficient, but on whether they meet customer needs. We should leverage new technologies to customize products to individual needs, rather than the other way round. It's already happening in other industries where customers choose their "playlist" - why should banking be different?

When it comes to establishing AI guard rails, it's important that industry players and regulators within the financial ecosystem work together, such as in the case where the Monetary Authority of Singapore (MAS) recently partnered banks - HSBC included - and tech companies to enhance quantum security.