Artificial Intelligence (AI) is evolving rapidly, bringing both unprecedented opportunities and complex challenges. As organizations, regulators, and consumers navigate the complexities of Generative AI (GenAI), the need for structured governance and ethical responsibility has become even more critical, now more than ever.
AIR has been exploring the potential impact of GenAI on financial regulation and consumers of financial services through its program “NextGenAI: The Future of Financial Oversight and Protection.” In March 2024, AIR released a white paper — “AI: Transforming the Future or Triggering Fear? Generative Artificial Intelligence and Its Impact on Financial Consumers and Regulators” — which kicked off an open public call for papers. AIR invited diverse, international, and interdisciplinary contributions, encouraging submissions on a range of topics, including the implications of GenAI for consumer protection, innovative approaches to financial regulation, and the ethical considerations surrounding AI in finance. The response was exceptional, and we received numerous high-quality submissions that offered valuable insights into this rapidly evolving field. We are excited to share these winning papers, which represent some of the most innovative and thought-provoking ideas in the realm of GenAI and finance. To further these discussions, we are also launching a special NextGen AI podcast episode, featuring the authors of these selected papers in conversation about their findings and the practical implications for businesses, regulators, and technologists.
By Delicia Hand, Senior Director, Digital Marketplace, Consumer Reports
Delicia Hand’s paper explores a paradigm shift in consumer financial protection, advocating for a move from reactive regulation to proactive consumer empowerment. She introduces the concept of AI Financial Guardians — intelligent systems designed to enhance financial decision-making and prevent fraud. The paper underscores the importance of adaptive regulation that keeps pace with technological advancements and ensures fair and inclusive access to AI-driven financial services.
💡Key Takeaway: Policymakers and financial institutions must move beyond compliance-driven approaches and embrace AI-driven consumer empowerment as the next frontier of financial protection.
By Dr. Henry Balani, Global Head of Industry & Regulatory Affairs, Encompass Corporation
Dr. Balani’s paper examines the transformative role of Generative AI in Know Your Customer (KYC) onboarding. With AI’s ability to automate identity verification and enhance risk assessment, financial institutions can streamline compliance processes while improving customer experience. However, the paper also highlights challenges related to bias, data privacy, and regulatory scrutiny.
💡Key Takeaway: While GenAI can revolutionize KYC onboarding, banks must implement rigorous safeguards and explainability measures to prevent biased decision-making and protect consumer data.
By Aboitiz Data Innovation (ADI) Team, represented by Dr. Adrienne Heinrich
This paper proposes a six-stage governance framework for responsible GenAI development, addressing key principles such as transparency, accountability, and data protection. ADI highlights the need for industry-specific AI governance models, recognizing that GenAI applications in finance, healthcare, and manufacturing each carry unique ethical risks. The paper also calls for stronger global alignment on AI regulations.
💡Key Takeaway: Organizations must embed ethical considerations at every stage of AI development — from problem definition to deployment and continuous monitoring — to ensure trust and accountability.
The insights from these thought leaders are critical to shaping a responsible AI ecosystem. We invite you to explore their research in full and gain deeper perspectives on the challenges and opportunities that lie ahead.
PODCAST • GenAI for Finance: The Winners of AIR’s Call for Papers
GenAI is revolutionizing finance! Hear from the winners of AIR’s NextGenAI Call for Papers: Delicia Reynolds Hand, Dr. Henry Balani & Dr. Adrienne Heinrich. They discuss GenAI’s impact on consumer protection, financial crime & ethical governance.
PODCAST • How to Include Everyone: The Gates Foundation’s Michael Wiegand
Michael talks about the global evolution of financial inclusion and the Bill & Melinda Gates Foundation’s ongoing efforts. Learn about digital financial inclusion, consumer protection, digital public infrastructure, and barriers to fair finance.
INITIATIVE • NextGenAI Explores the Future of Financial Oversight and Consumer Protection
NextGenAI is a multi-faceted initiative that delves into the potential impact of Generative AI (GenAI) on financial services and financial regulation through a series of thought-provoking and engaging activities.
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