China is calling for regulations when it comes to AI in finance, because there is room in AI for error, like all other industries. China is should consider launching a regulatory framework for AI in the financial services industry, and advance technology that is used by regulatory agencies to improve industry-wide management, according to policy advisers at a leading Chinese think-tank.
AI in Finance, According to the Chinese Think-Tanks
“We should not deify artificial intelligence as it could go wrong just like any other technology,” Xiao Gang reported, who is a senior executive researcher at the China Finance 40 Forum.
“The point is how we make sure it is safe for use and include it with proper supervision,” Xiao stated. He was also a former chief executive in the securities regulations.
According to the China Finance 40 Forum, there has been a deficiency in development, when it comes to technology responsible for regulating AI and other forms of intelligence finance. With the evolution of AI and other emerging technologies in the finance industry, there should be contingency plans that should be implemented as soon as possible. Along with the contingency plans, authority figures should start drafting laws and policies on protection of privacy and security of a data.
According to Professor Huang Yiping of the National School of Development of Peking University, there should be lessons learned from the ups and downs of the online peer-to-peer (P2P) borrowing sector where there are not enough regulations being introduced.
Changes Need To Be Made in the Finance Industry
“Changes have to be made among policy makers,” Zhang Chenghui, chief of the finance research bureau at the Development Research Institute of the State Council, stated.
“We suggest regulation on intelligent finance to be written in to the 14th five-year plan of the country’s development, and each financial regulator – including the central bank, banking and insurance regulators and the securities watchdog – should appoint its own chief technology officer to enhance supervision of the sector.”
Zhang also considered that the Chinese government connect data platforms of each financial regulatory authority agency to be able to improve the monitoring of potential risk, and be able to act faster if any issue arises. This is to show that there are strong regulatory bodies in finance, but the agencies are lacking in development when it comes to AI and other forms of intelligent finances.
With think-tanks and researchers being very outspoken about the deficiency of development, when it comes to AI in finance, the government will have no choice but to listen to what they have to say.