Lael Brainard: What are we learning about artificial intelligence in financial services?

Speech by Ms Lael Brainard, Member of the Board of Governors of the Federal Reserve System, at "Fintech and the New Financial Landscape", hosted by the Federal Reserve Bank of Philadelphia, the Federal Deposit Insurance Corporation, University of Pennsylvania Wharton School of Business, Bank Policy Institute, and Brookings Institution, Philadelphia, Pennsylvania, 13 November 2018.

The views expressed in this speech are those of the speaker and not the view of the BIS.

Although it is still early days, it is already evident that the application of artificial intelligence (AI) in financial services is potentially quite important and merits our attention. Through our Fintech working group, we are working across the Federal Reserve System to take a deliberate approach to understanding the potential implications of AI for financial services, particularly as they relate to our responsibilities. In light of the potential importance of AI, we are seeking to learn from industry, banks, consumer advocates, researchers, and others, including through today's conference. I am pleased to take part in this timely discussion of how technology is changing the financial landscape.

The Growing Use of Artificial Intelligence in Financial Services

My focus today is the branch of artificial intelligence known as machine learning, which is the basis of many recent advances and commercial applications.