Clifford Chance

Unlocking the predictive power of AI in the investment management industry

28 February 2024

The fast-paced development of artificial intelligence (AI) presents increasing opportunities for the financial services industry. AI typically "learns" through data points that are fed into its system. Firms using AI-powered tools in the provision of financial services need to navigate the risks of using such technology, including ensuring that there is data integrity to mitigate against the risk of embedded biases within the system's decision-making process. Transparency and explainability are key to ensuring that AI decision-making processes can be clearly articulated to clients and regulators.

This article considers the impact of the developing regulatory landscape in the EU and the UK on AI in financial services, focusing on the provision of investment advice and portfolio management services.

This article was originally published in the Butterworths Journal of International Banking and Finance Law.

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