Question

Discuss the legal dimensions of using AI and machine learning to financial industry.

Answer 1

Use of AI and machine learning in financial industry leads to automation with regards to different aspects of service delivery. The issue of automation can transgress into a legal issue when it leads to financial surveillance by the companies in the financial industry. This is because data related to customers cannot be used by financial services companies in any way that they want. Often privacy is breached and this will create legal ramifications for companies in the financial services industry.

Many financial service companies use private data of customers to steer the behavior of the customers. Often companies use the data without the consent of the users and use the data to manipulate their spending behavior. This is both against the law as well as unethical.