Influencing the Future of Risk with AI

Like a lot of the world, I have been thinking a lot about how AI might influence the future, with a particular bent on the role of risk management to empower, constrain or harness what comes next.

Following the breadcrumbs in APRA's Therese McCarthy Hockey's impressive speech to the AFIA last week, there are some super interesting times ahead.

Here are some of the risk breadcrumbs I picked out of her speech:

🚩 Workforce Impacts: AI could cause job displacement and potentially evolution.
🚩 Criminal Activities: the potential for AI to be exploited for scams and disinformation.
🚩 Financial Stability: AI could worsen decision-making and spark crises if misapplied.
🚩 Errors & Bias: Flaws in AI models/data could lead to faulty conclusions and discrimination.
🚩 Oversight & Control: Complex AI systems are hard to monitor, risking unexpected outcomes.
🚩 Privacy & Legal Concerns: Rising data volumes pose privacy and security risks.
🚩 Governance Challenges: Strong board oversight and risk management are essential.
🚩 Ethical Impacts: AI must be transparent to maintain public trust and avoid discrimination.

It will be super interesting to see how we (the risk community in particular) harness AI's potential while safeguarding our financial systems and communities.

Let me know what other risks / opportunities you see?

[Image above represents the idea that we need to keep seeking out the breadcrumbs to follow - or discard - on this AI-integrated pathway. Noting that if humans were involved in the making of this image, which other than immature-prompt-engineering-skills they were not, we might have more coherent signs to follow. Food for thought 🤔 ]

August Advisory

#HumanRisk #AI #Opportunity