Generative Artificial Intelligence in Finance
Report

Generative Artificial Intelligence in Finance

Risk Considerations

Ghiath Shabsigh and El Bachir Boukherouaa
IMF, 2023
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Editorial Rating

7

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Recommendation

Generative AI may improve business decisions, and its application, if properly monitored, can make the components of finance – analysis, research, risk assessment – run more efficiently and effectively. But then again, as IMF professionals Ghiath Shabsigh and El Bachir Boukherouaa explain in this informative report, it may not. Systems can misuse data, producing biases and driving erroneous conclusions that could undermine public confidence in the financial system. Financial professionals will find this an important look at generative AI’s double-edged sword.

Summary

Generative artificial intelligence (GenAI) can transform the financial sector.

When applied to financial services, generative artificial intelligence can enhance decision making, business development and overall well-being through product and service innovation.

GenAI is a subcategory of AI machine learning that can create new content through the efficient processing of large quantities of data. GenAI has the capacity to reconfigure financial risk management, regulation and supervision. Several high-profile firms have already embraced this technology by applying GenAI to fraud detection, capital markets analysis, document generation and processing, and software development.

Yet it carries significant risks in its applications.

GenAI in financial...

About the Authors

Ghiath Shabsigh and El Bachir Boukherouaa are with the International Monetary Fund.

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