How do ethical principles play out in the real world of financial services? In lending? Consider an AI model that denies a mortgage application.
If the model's logic is opaque, or if it's training data reflects past discrimination, this could violate both justice and exp exploitability.
In wealth management, Rob advisors must balance personalization with fiduciary duty, recommending high fee products that benefit the firm more than the client could breach beneficence in algorithmic trading, speed and efficiency are valued, but opaque AI models that respond unpredictably to market conditions may create systemic risks, challenging non maleficence and justice at scale.
In insurance, AI-based claims processing can boost efficiency.
But if claimants are notified as to why a claim was denied or cannot contest that claim, that violates autonomy and exp exploitability according to the Financial Stability Board and International Monetary Fund, the risks of opaque, unfair, or irresponsible AI decision making are magnified in finance due to its foundational role in economic stability.
Ethics in AI isn't just a theoretical discussion.
It is a practical necessity for financial professionals.
By anchoring our AI strategies to foundational principles like fairness, transparency, and human autonomy, we can unlock the full benefits of this powerful technology without compromising trust or responsibility.
