The Role of AI in Transforming Financial Practices

Since OpenAI's introduction of ChatGPT in November 2022, talk of artificial intelligence (AI) has captured Wall Street's enthusiasm. Yet, even as AI surges to the forefront in corporate earnings calls, some investors remain skeptical, viewing its promises as mere hype. In this Public Discussion Note on "The Role of AI in Transforming Financial Practices," Prof. Markus Leippold, SFI Senior Chair and Professor of Financial Engineering at the University of Zurich, strikes a balance between exuberance and caution. By contrasting the optimistic projections of the big-tech companies, who view AI as pivotal to market competition, with the skeptical outlook of some investors, Prof. Leippold attempts to unravel the complexities of today's AI phenomenon. He begins by discussing the technology itself and the potential for AI to reshape the economic landscape, and ends by touching on ethical considerations, societal implications, and the challenges that must be met before its widespread application in finance.