Share these talks and lectures with your colleagues
Invite colleaguesPractice paper
Artificial intelligence ethics in financial services
Journal of Digital Banking,
9
(4),
317-325
(2025)
Abstract
The use of artificial intelligence (AI) in finance poses a new realm of questions about how it should be regulated, how its effects and consequences are governed and whether it should be subject to a defined code of ethics. Although the full potential of AI in this sector is still in its infancy, Japanese regulators appear to be more advanced in their approach to some of the ethical issues than their counterparts in many parts of the world. This paper asks: how can other areas of the globe learn from the experience of AI in financial services in Asia Pacific and Southeast Asia? And what issues are likely to need attention and action in the near term? To navigate the ethical and operational challenges of AI in financial services, all stakeholders — banking professionals, regulators and technology providers — must prioritise robust data governance, transparency and ethical AI practices. This involves leveraging strategic frameworks like the Generative AI Decision Tree to guide decision making, fostering cross-industry collaboration to establish comprehensive standards and adopting principle-based approaches that balance innovation with accountability. By aligning efforts to promote trust, inclusivity and sustainability, the financial sector can harness the full potential of AI while safeguarding its integrity and resilience.
Keywords: AI ethics; AI adoption; AI governance; AI models; AI systems; data governance; financial crisis; financial fraud; financial risks; financial services; generative AI; global finance; micro-lending; regulatory action; regulatory scrutiny; technological advances
The full article is available to subscribers to the journal.
Author's Biography
Keith B. Carter is deeply passionate about harnessing emerging technology to transform how individuals work, communicate and innovate. With a career spanning Wall St. technology, luxury fashion and academia, Keith has advised businesses and governments worldwide on the orderly adoption of artificial intelligence (AI), automation and block chain technologies. As a partner at KDA Capabilities and a member of the Bretton Woods Committee, he frequently speaks at international events on AI-driven productivity, digital transformation and leadership in the tech age. Keith’s work blends practical insights with a forward-thinking approach, helping organisations navigate the challenges and opportunities of the digital economy. He was a professor of computer science at the National University of Singapore, where he taught intelligent systems, FinTech and data-driven decision making. He founded the NUS FinTech Lab and co-founded the deep tech CRYSTAL Centre. He also teaches executive education, co-leads industry initiatives and serves on advisory boards, including the DEC Institute in Zurich, where he contributes to certifying block chain developers. Keith’s latest book, Know Decide Act: 10× Your Productivity at Work with AI and Automation, encapsulates his vision of empowering professionals to thrive in a rapidly evolving technological landscape. He is also the author of Actionable Intelligence: A Guide to Delivering Business Results with Big Data Fast!.
Andrew Cave is a business author and journalist with 36 years of experience in writing and advising about business, finance, technology and sustainability. Working for The Daily and Sunday Telegraph in London and New York, he has interviewed many of the world’s leading executives, including Jeff Bezos, Larry Ellison, Sir James Dyson and Sir Richard Branson. Andrew has written nine books on business leadership, including The Secrets of CEOs, Billions to Bust and Back, The Power of Purpose and Drive to Succeed.
