AI’s Role in Financial Stability: Opportunities and Risks
Introduction Artificial Intelligence (AI) is transforming the financial industry by improving efficiency, risk assessment, and regulatory compliance. The Financial Stability Board (FSB) has published a report analyzing how AI—particularly generative AI (GenAI) and large language models (LLMs)—is expanding in finance. While AI adoption offers many benefits, such as operational streamlining and fraud detection, it also […]
The Rise of AI in Financial Institutions: Benefits and Risks
AI’s Growing Role in Financial InstitutionsArtificial intelligence (AI) is reshaping the financial sector at an unprecedented pace. The Office of the Superintendent of Financial Institutions (OSFI) and the Financial Consumer Agency of Canada (FCAC) have released a report detailing AI adoption trends, associated risks, and best practices for mitigation. As more financial institutions integrate AI […]
The Rise of Empathic AI: A New Frontier in Human-AI Interaction
Introduction: The Potential of Empathic AI As artificial intelligence continues to evolve, one of its most intriguing frontiers is the ability to simulate human empathy. While AI may never truly “feel” emotions, it can convincingly express concern, validation, and understanding—characteristics that make humans feel heard and supported. This article explores whether these expressions of empathy […]
Bridging the Digital Divide: AI’s Uneven Impact
In the latest episode of the Risk Insight Weekly Podcast, the discussion centers around the rapid evolution of artificial intelligence (AI) and its far-reaching consequences. The episode delves into how AI is transforming industries, creating significant productivity gains in sectors like finance, while simultaneously widening disparities in others, such as healthcare and manufacturing. The Uneven […]
Mitigating AI Risks and Maximizing Benefits in Canada’s Financial Sector
AI’s Growing Role in the Canadian Financial Landscape Artificial intelligence (AI) is increasingly integrated into Canada’s financial institutions. The “Big Six” banks, various fintech enterprises, and third-party service providers are deploying AI-powered systems to enhance consumer-facing services such as investment algorithms, tailored marketing, and product recommendations. However, as these technologies become more prevalent, concerns around […]
Unlocking the Future of Finance: Open Finance Policy Insights
Introduction to Open Finance The OECD’s analysis of Open Finance highlights its potential to revolutionize financial services. Building on open banking, Open Finance enables the sharing of financial data beyond payments, including savings, insurance, credit, and investments. Its success depends on balancing innovation with strong consumer protection, fostering trust, and ensuring secure and equitable interoperability. […]
AI’s Impact on Vulnerable Workers and Future Opportunities
Introduction to AI and Workforce InequalityArtificial Intelligence (AI) has made impressive advancements, particularly in automating cognitive and non-routine tasks. However, its integration into workplaces raises concerns about its diverse effects on different socio-demographic groups. This report from the OECD explores how AI disrupts employment for women, low-skilled, and older workers, as well as other vulnerable […]
Assessing the Future of AI: Risks, Benefits, and Policy Directions
Introduction: Understanding AI’s Transformative RoleArtificial Intelligence (AI) is evolving rapidly, transforming industries and reshaping societies. The Organization for Economic Cooperation and Development (OECD) has released an insightful report exploring AI’s profound implications—both opportunities and challenges. The report emphasizes AI’s dual nature: while it can drive innovation, tackle societal challenges, and improve living standards, it also […]
Miracle or Myth? Unlocking the Potential of AI for Macroeconomic Productivity
General OverviewArtificial Intelligence (AI), often regarded as a groundbreaking General-Purpose Technology (GPT), is raising expectations for its ability to boost macroeconomic productivity—similar to past industrial innovations like electricity and the internet. A recent OECD report examines AI’s potential to enhance productivity over a ten-year period, providing various estimates and insights into how micro-level efficiency gains […]
AI Podcast: DeepSeek – The Tiny Titan
In this episode of Risk Insight Weekly Podcast, we take a deep dive into DeepSeek, exploring its impact, innovations, and what it means for the future of AI A Disruptive Shift in AI DevelopmentArtificial intelligence has long been a game of scale—bigger models, more computing power, and deeper pockets. But DeepSeek, a small yet formidable AI […]