Ethical and regulatory challenges of AI adoption in the financial services sector: A global perspective

Increasingly within a few years, the drive for the articulation of strategies for transformation in operational efficiency of financial services, from customer service to fraud detection, behavioral prediction, credit decisions, cash-flow forecasts, or even anti-money laundering, has gained momentum with the advent of, or enhanced use of, AI technologies. Still, these systems are very much in a variable state; thus, a great deal stands to be done to bring much-needed understanding of how these systems function and to lend credibility to any push by the industry for real regulation of AI systems in an effective manner balancing innovation and society good. This research manuscript discusses the state of the art in current activities and emerging developments about new interfaces in interdisciplinary terms for ethics and regulations regarding the use of AI in financial services. Accordingly, the review and analyses of the proposed laws and regulations as well as the guidelines available at the literature will therefore be sketched out as ethical and responsible dimensions assessment frameworks of AI systems in FS. This paper proposes the generation of AI frameworks linking regulatory considerations to risk identification processes in the AI lifecycle development. A discussion of some of the main barriers and challenges regarding this research will conclude in promising future directions for this work, which considers the legal and ethical framework of artificial intelligence and machine learning in financial services.