Supervisors Symposium

What is AI?

The term ‘Artificial Intelligence’ was first coined in 1956 by a Dartmouth University professor, John McCarthy. He defined Artificial Intelligence as: “Every aspect of learning or any other feature of intelligence can in principle be so precisely described that a machine can be made to stimulate it. An attempt will be made to find how to make machines use language, form abstractions and concepts, solve kinds of problems now reserved for humans, and improve themselves.”

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S UMM I NG U P WH E R E WE A R E TO D AY • Many Bay area tech community consultants are not convinced that banks/financial services firms are fully committed to the bold use of fintech/AI products. • The concern heard is that banks will use the new technology products to push ahead with automation and to cut operating costs. • As a secondary theme, banks are seen as being interested in using predictive analysis from data sets to help combat fraud and improve compliance efforts. • There also is an acknowledgment that fintech/AI technology can assist banks in managing enterprise risk beyond the compliance improvements. • Regulators need to keep up on the technology deployed by industry. The marketplace today has RegTech firms in business throughout the world.

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