The Swiss Financial Market Supervisory Authority (FINMA) has
published the findings of a recent survey on artificial intelligence (AI) use
among financial institutions in Switzerland. The survey was conducted between
late November 2024 and mid-January 2025.
FINMA surveyed approximately 400 licensed institutions.
These included banks, securities firms, insurance companies, insurance
intermediaries, fund managers, and market infrastructure providers.
Widespread Use of AI
Around half of the surveyed institutions currently use AI or
have pilot applications underway. An additional 25% plan to adopt AI within the
next three years. On average, each respondent uses five AI applications and has
nine more in development. Larger institutions tend to have more AI use cases
than smaller ones.
Among AI users, 91% make use of generative AI tools, such as
modern chatbots. Many institutions rely on services from large technology
providers. FINMA noted a growing dependence on external vendors, especially
among smaller firms that often do not develop AI tools in-house.
An #AI Future For Financial Sector#MachineLearning #DeepLearning #BigData #Fintech #ML #DL #Robotics #insurtech https://t.co/OkT8ssYKVz pic.twitter.com/NbqUn8Rvk2
— AI (@DeepLearn007) September 20, 2017
This reliance increases outsourcing risks. FINMA highlighted
these risks in its 2024 Risk Monitor, stating that outsourcing critical
functions to third parties remains a major operational concern for the
financial sector.
You may find it interesting at FinanceMagnates.com: AI
Will Take Your Job — CEOs Say Deal with It — What Can You Do?
AI Governance and Risk Management
About 50% of institutions have established a formal AI
strategy. Most organisations manage AI under existing governance systems,
focusing on data protection, cybersecurity, data management, and enterprise
risk management.
Institutions identified key risks linked to AI. These
include concerns about data quality, data protection, and the explainability of
AI decisions. Respondents also raised issues about data security, incorrect
outputs, and outsourcing-related risks.
Sector Breakdown
Of the 187 institutions currently using AI, 100 are banks
and securities firms. Seventy-five are insurance companies and intermediaries.
The remaining 12 include fund managers and financial market infrastructure
operators.
“FINMA will ensure that the use of new and innovative
technologies on the Swiss financial market is in line with the regulatory
framework through transparent and technology-neutral authorisation and
supervisory activities,” the regulator stated.
“In doing so, FINMA will follow the principle of ‘same
business, same risks, same rules’. The objective of the survey was to track the
development of the use along with the governance and risk management of AI in
order to ensure a risk-based supervisory approach.”
This article was written by Tareq Sikder at www.financemagnates.com.
Source link
