While the benefits of AI in financial services are impressive, there are also huge challenges to be considered. Huge concerns include data privacy and security, as huge AI systems rely on vast personal data. Financial institutions will thus have to ensure data security and compliance with appropriate regulations.
There is also a possibility of bias in AI algorithms. In case biased data is used to train AI systems, the outcomes will be biased. Therefore, financial institutions must address such issues for them to build trust with their customers.