Artificial intelligence and Big Data
Artificial intelligence (AI) is a key driver of the digital transformation in the Swiss banking industry. The Swiss Bankers Association (SBA) is evaluating in depth how to harness the competitive potential and pursue innovation while preserving customers’ trust, and it is making a valuable contribution to responsible policies in this area.
Swiss banking institutions enjoy a high level of trust and offer first-class services. At the same time, however, they operate in a fast-moving and competitive environment in which pressure on margins is high. AI is playing a vital role in this respect.
AI already indispensable
To preserve its standing as a centre of technological innovation, Switzerland can and should be a pioneer in the development of AI, and the financial sector is an ideal breeding ground for AI applications thanks to the vast quantity of data at its disposal.
Banks are taking a cautious approach and are currently focusing primarily on AI-supported transaction monitoring solutions, for example to combat money laundering as well as to identify and prevent fraud. Other areas of interest are customer identification, process automation and efficient querying of in-house knowledge bases.
It is vital for financial institutions to address the risks associated with the use of AI in a targeted manner. They have extensive experience of trusted data processing and managing operational risks. By taking a rigorous approach, they can harness the full potential of AI while minimising the risks.
Innovation-friendly frameworks essential
Effective, innovation-friendly frameworks are absolutely essential to ensuring that AI is used responsibly.
These include the following:
- Powerful, secure infrastructure
- High-quality, trusted data
- A sufficiently large talent pool
- Promoting and researching digital skills
- Broad social acceptance
- Technology-neutral, principles-based laws and regulations
The SBA’s commitment
Regulating AI is the subject of intense debate both in Switzerland and internationally. Whereas the European Union has created a comprehensive regulatory framework with its AI Act and set about implementing it in stages, the Federal Council has opted not to follow this example. Instead, it favours a targeted, technology-neutral and principles-based approach that has so far proven to work well.
The SBA supports this approach and shares the Federal Council’s view that the three goals of encouraging innovation, protecting basic rights and strengthening trust in AI can be met most effectively through carefully thought-out amendments to existing legislation. Tried-and-tested principles already serve as a valuable guide for financial institutions when it comes to employing AI in a secure and responsible way.
The SBA is keeping a close eye on developments and seeking active involvement in the social policy debate in order to help in shaping this secure and responsible use of AI in the financial sector and to ensure that the frameworks in place are effective and future-proof.