Investing in AI for Risk Management in Finance: Exchanging one risk for another?
Finance is amongst the leading industries when it comes to utilising artificial intelligence in its processes. In recent years, there has been a rising trend for AI adoption to support risk management functions in many financial service companies, covering areas such as credit, market and operational risk.
However, there are still many challenges and limitations to the adoption of AI, which we’ll further explore as we dive deeper into the investment appraisal of an AI project. Finally, with all this information being presented, we will address the burning question: Is AI worth the risk?
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