Building trustworthy AI
A comprehensive approach to conduct, data protection, and ethics
Customers are increasingly interacting with financial services (FS) firms through digital channels. Reduced human interaction requires firms to use AI and data analytics to understand and serve customer needs better.
The Swiss regulatory approach to conduct and data protection requirements in the context of AI is comparable to those in the UK and the EU as outlined in this report. In short term, the Swiss approach is “technology-neutral” and does not see an immediate need for regulatory action. AI should thus be regulated under the existing Swiss regulatory framework allowing space and opportunity for significant market innovation. Apart from the risks outlined in this report, AI at the same time offers vast opportunities to transform value creation for Swiss market participants.
This section provides a broad overview of the Swiss point of view regarding the potential risks arising from the use of AI by financial services providers. Particular attention should be drawn to the following risks:
Data Protection: Personal data could be misused by AI systems, resulting in the violation of fundamental personal rights of individuals, in particular in the insurance business.
Conduct: Undetected data manipulations or algorithm errors/ decisions could result in breaches of client conduct rules and organisational professional conduct requirements as well as in incremental operational risk.
Fraud: AI systems could be manipulated and trigger fraudulent reporting (financial or regulatory related) or eventually misappropriation of assets.
About the Centre for Regulatory Strategy, EMEA
The Deloitte Centre for Regulatory Strategy is a powerful resource of information and insight, designed to assist financial institutions manage the complexity and convergence of rapidly increasing new regulation.
With regional hubs in the Americas, Asia Pacific and EMEA, the Centre combines the strength of Deloitte’s regional and international network of experienced risk, regulatory, and industry professionals – including a deep roster of former regulators, industry specialists, and business advisers – with a rich understanding of the impact of regulations on business models and strategy.