Artificial intelligence and augmented intelligence collaboration: regaining trust and confidence in the financial sector

Abstract

Robots and chatbots are sophisticated. Artificial intelligence (AI) is increasingly popular in the financial industry due to its ability to provide customers with cheap, efficient and personalised services. This article uses doctrinal sources and a case study to show that many banks and FinTech start-ups are investing in AI. Yet, there are a number of challenges arising from the use of AI which could undermine trust and confidence amongst consumers. This article features the issue of bias and discrimination in banking. There is evidence that algorithms discriminate against certain races and gender. Legislative gaps in the Equality Act 2010 and the General Data Protection Regime will be analysed. Ultimately, human beings are still needed to input, train and help machines to learn. Fortunately, the FCA are leading in regulating technology, from the launch of regulatory sandboxes to their co-operative collaboration with FinTech start-ups on regulatory matters. Augmented intelligence collaboration is needed to enable industry players and regulators to provide seamless regulation and financial stability. The future of AI regulation is inter-disciplinary in approach.