Comparing minds and machines: implications for financial stability 2021 (BoE)
A research paper from the Bank of England
Abstract
Is human or artificial intelligence more conducive to a stable financial system? To answer this question, we compare human and artificial intelligence with respect to several facets of their decision-making behaviour. On that basis, we characterise possibilities and challenges in designing partnerships that combine the strengths of both minds and machines. Leveraging on those insights, we explain how the differences in human and artificial intelligence have driven the usage of new techniques in financial markets, regulation, supervision, and policy making and discuss their potential impact on financial stability. Finally, we describe how effective mind-machine partnerships might be able to reduce systemic risks.
Citation
Bank of England, Comparing minds and machines: implications for financial stability (2021) [online] Available at: Bank of England Staff Working Paper No. 937 [Accessed 10 February 2022]