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Dr Michał Nowakowski
ORCID: 0000-0002-8841-6566
Dr Michał Nowakowski He serves as Head of NewTech at NGL Advisory and Counsellor at NGL Legal in the #fintech and #newtech areas and is co-founder of Ceforai, an ethical artificial intelligence company. He is the founder of the video blog Dr. Fintech (available on YouTube), legal advisor, and author of the book Fintech. Technology, Finance, Regulation. A practical guide for the financial innovation sector. Leader of the Working Group on Artificial Intelligence in the Financial Sector,
DOI: 10.33226/0137-5490.2022.1.1
JEL: K23, G21, G51

The application of artificial intelligence in finance is one of the new issues which, in addition to regulatory challenges of hard law nature, raise ethical questions. This study deals with the subject of ethical aspects of the use of artificial intelligence in the financial sector, which is becoming more and more common, and therefore sometimes "invisible" to the end user. Examples of its use can be found, among others in risk assessment models or systems for detecting fraudulent transactions and counteracting money laundering and terrorist financing. Increasingly, they are also used to assess the creditworthiness of a potential borrower or provide investment advice. In the latter cases, transparency and ethics take on a special meaning, because they directly "touch" the human sphere and can significantly affect the observance of fundamental rights. At the same time, finding the "happy medium" that will not only balance various interests, but also be realistic to implement, is not an easy task. It is often emphasized in the literature that today there is no positive (any?) Effect on the implementation of many postulates in the field of ethical AI (Dubber et al., 2020), in connection with the use of various codes of ethics or good practices, which are more based on the so-called self-regulation or self-governance, that is, self-determination practices that are then audited by the settler. At the same time, the dynamic development of algorithms, especially those that make (to some extent) autonomous decisions, means that supervision — also ethical — cannot be temporary, but should be carried out continuously (Lo Piano, 2020), which only exacerbates the already existing problems related to algorithmisation.

Keywords: ethics; artificial intelligence; robo-advice
DOI: 10.33226/0137-5490.2021.8.1
JEL: O30, E22, D14, D18

The fourth industrial revolution, Economy 4.0 and Finance 4.0 are facts. Technological changes in the context of finance have resulted in a more active application of artificial intelligence, machine learning and algorithms for product ranges and services aimed at individual clients. Examples of applying AI within the financial sector are automated creditworthiness assessment and financial advice (robo-advice). The article presents these areas from a legal and economic perspective. The wider application of algorithms within the financial sector requires a non-conventional approach by regulators in order not to over-regulate this new and promising segment of the financial services market.

 

Keywords: artificial intelligence; algorithms; creditworthiness; machine learning; robo-advice

Dr Michał Nowakowski

He serves as Head of NewTech at NGL Advisory and Counsellor at NGL Legal in the #fintech and #newtech areas and is co-founder of Ceforai, an ethical artificial intelligence company. He is the founder of the video blog Dr. Fintech (available on YouTube), legal advisor, and author of the book Fintech. Technology, Finance, Regulation. A practical guide for the financial innovation sector. Leader of the Working Group on Artificial Intelligence in the Financial Sector, which operates under the Ministry of Digitalisation. Lecturer at postgraduate programs, including the Warsaw University of Technology and the Poznań University of Economics. Associated with the Cyber Science Center at the University of Silesia.