AI's Double-Edged Sword in Finance

This chapter explores the transformative role of AI technology in the financial sector, emphasizing both its benefits, such as enhanced market efficiency and innovative trading strategies, and the challenges it presents, including explainability and accountability issues. The discussion highlights the complexities surrounding the use of AI in trading and compliance, while addressing the regulatory landscape and potential cyber vulnerabilities. Overall, it underscores the necessity for ongoing dialogue between regulators and market participants to safely harness AI's potential in finance.