Considerations on the Ethical Use of Artificial Intelligence in Capital Markets

This white paper has been developed by the Task Force to explore the ethical considerations of AI.
We have grouped the ethical considerations into two themes:
• Data Input and Design (e.g. AI acting on data set bias), and
• Understanding and Control (e.g. a lack of transparency of AI related decisions).
We have made recommendations for how firms can address the ethical considerations of these two themes. In summary firms should:
• Apply a critical view of the data sets used for each AI application and perform specific quality control checks from design through to operation;
• Train design teams and individuals to be aware of, and mitigate, biases within the function and design of individual AI applications;
• Assess what level of ‘explainability’ is necessary for each AI application and take this into account in its design; and
• Ensure that all AI applications are subject to a suitable control framework and audit process throughout their lifecycle.
AI is a fast-developing technology which is already being applied to specific uses within firms, as well as moving towards larger-scale deployments. Continuing discussions and information sharing on the ethical considerations of AI will be critical for the development of the capability within capital markets.