ABSTRACT
This chapter focuses on the future of cloud computing in financial services and explores a few examples where machine learning (ML) and artificial intelligence (AI) are transforming how the financial services industry is driving innovation by leveraging data to improve products and services, and reduce risk. A recent study by the Financial Stability Board (FSB) has highlighted an interesting aspect of a potential risk-related side effect of the continued advancement and widespread use of ML and AI: Applications of AI and machine learning may enhance the interconnections between financial markets and institutions in unexpected ways. A related aspect of these concerns about ML and AI for the Financial Services industry is a requirement for Model Risk Management (MRM). The demands of additional data management, use cases, technology infrastructure, user experiences, privacy, governance and security have increased exponentially over the past decade.
