"The essay presents a vision of the AI-enhanced actuary, who leverages AI to build more accurate and efficient models, incorporates new data sources, and automates routine tasks while adhering to professional and ethical standards. We also discuss the challenges and speed-bumps along the way, including explainability, bias and discrimination risks, regulatory hurdles, and the need for actuaries to acquire AI knowledge and skills."
“... we provide evidence that setting the risk-weighted ratio at 15\% and the simple leverage ratio at 10% would significantly decrease the probability of default without hampering banks' activities.”
The study investigated how ChatGPT and Bard categorize investor risk profiles compared to financial advisors. While there were no significant differences in the risk scores assigned by the chatbots an
The paper suggests that companies developing high-risk AI systems should demonstrate their safety before deployment, arguing for proactive risk management. It proposes a risk management approach where