The result of Dutch research, aimed and jointly conducted by De Nederlandsche Bank (DNB) and the Authority for the Financial Markets (AFM), shows that there is a flossing of amazement among the residents of the Netherlands concerning the role played by artificial intelligence (AI) in the financial sectors. The study outlines a conspicuous reservation merged with an already higher level of distrust about AI, in this case, regarding its main usage within the banking and financial areas.
AI application responses in the public
The cooperative research studies between DNB and AFM were used to identify all continents within the Netherlands, with approximately 2,200 people. Results show that 22 percent of respondents see it academically incorrect if a financial arm uses AI compared to those who see it structurally or morally 15 percent wrong. Such data carries the notion that there is concern that any AI in finance brings more risks than it could have, i.e., violating privacy, discriminating, and being unethical in running its business.
This shows that many commenters in the survey are either neutral or don’t have an opinion. This points out the possible reason for their lack of knowledge regarding how AI technologies are used by their banks, insurers, or pension funds. In fact, just a small number, equal to six percent of the audience, admitted knowing what applications of AI are encompassed in the services provided to them by financial organizations.
Increasing AI Integration Despite Concern
For instance, the research assessed the magnitude of AI application in the financial sector stakeholders like banks, insurers, asset managers, and pension providers. AI use was found to be the case among a greater number of institutes not only taking advantage of AI but strategizing the implementation of more AI instances. Communication process automation is increasing—voice interaction transcription along with the consultation with a chatbot after convergence with phone calls for greater efficiency—is no longer the leftover.
AI implementation is increasingly being considered in the financial sector, whether for improving products and services or for defense purposes such as fraud, money laundering, and terrorism financing. Such measures are simply a tool to keep institutions from being involved in financial crimes at all. This, in addition to the standards defined above, focuses on transparency, ensuring the robustness of systems, protecting privacy, and preventing discrimination, which are also required of these systems.
The path forward
In line with these scenarios, digitalization and AI implementation in the financial sphere will persist with advanced technology having a place to offer the best services and efficiency levels. Financial institutions are now seen to be turning to AI applications not only for better customer experience but also for enhanced risk management to discipline the risk involved, which is generally feared by the public.
These two bodies will also work to cultivate a regulatory environment that sustains and monitors the transition to AI implementations in the financial sector. AI should be carried out with high ethical standards and legal requirements. The governing aim would be to have a system that has extraordinary and, at the same time, reliable features.
Notwithstanding, public opinion in the Netherlands is divided and has some level of nervousness toward the utilization of AI in finance. However, with some appropriate measures and inspected closely, AI could prove useful in a way that provides benefits without interfering with the ethics and customer trust in financial institutions. The technological exemption will have the AI evolution and safeguards in place to check the public interest, which is to ensure that technological advancement promotes the financial landscape.
This article originally appeared in NL TIMES.