Abuja: Ms Gita Gopinath, the First Deputy Managing Director of the International Monetary Fund (IMF), highlighted the transformative impact of Artificial Intelligence (AI) on various sectors, including security markets, during the second IMF-International Organisation of Securities Commissions (IOSCO) conference. Gopinath emphasized the potential of AI to change capital markets through enhanced process automation and sophisticated data analysis.
According to News Agency of Nigeria, Gopinath also noted the risks associated with generative AI, such as concerns about financial stability, data integrity, and possible misuse for market manipulation. She underscored the ethical implications of AI-generated content, stressing the need for careful consideration of these issues.
Mr Rodrigo Buenaventura, Secretary-General of IOSCO, added that AI usage is prevalent in financial institutions, particularly in automating anti-money laundering detection and performing simple analyses. He pointed out the growing presence of large language models, like ChatGPT, in customer-facing operations and risk management, which have altered human interaction with AI. Buenaventura warned of potential risks, including a false sense of security due to AI's ease of use.
The Assistant Managing Director of the Capital Markets Group, Mr Lim Lee, echoed concerns about AI's risks, particularly in market manipulation and risk concentration. He mentioned that while 75 percent of institutions use AI, there is increased caution in its direct application as awareness of the associated risks grows.