On October 2, 2024, AmCham Germany and its Corporate & Business Law Committee hosted a panel discussion on “Artificial Intelligence: What’s next? Practical Use Cases and Developments in the Financial Sector.” The panel included experts from the Deutsche Bundesbank, Deutsche Bank AG, and UBS. Dr. Denise Bauer-Weiler, Co-Chair of the Corporate & Business Law Committee and member of the Management Board of UBS Europe SE, moderated the lively discussion, which focused on the role of AI as it relates to risk management, operational efficiency, and regulatory compliance. The discussion reminded us that AI is not something that is new, and that a collaborative approach to the technology is necessary.
Key takeaways included but were not limited to AI being a ‘team sport,’ amongst data scientists, bankers, and lawyers. While data scientists have a more rational, solutions-oriented approach to AI, bankers bring a more strategic, emotional perspective, namely one which includes both a degree of mistrust and enthusiasm for the innovation. Lawyers are focused on the regulatory climate and related impacts. Ultimately, the key lies in mitigating the risks while maximizing the benefits – all through this artful cross-functional collaboration to ensure necessary solutions. AI’s broad and mainstream adoption, exemplified by tools such as ChatGPT, highlights the need for evolving regulatory frameworks that ensure responsible usage.
Panelists noted AI adoption differences between countries and regions. More specifically, the panel discussion highlighted that the U.S. is more eager and experimental in its AI experience, while the EU focuses more on AI’s ethical considerations, including transparency and data protection. The meeting also touched on the felt need for centralized change management, noting it as a critical factor for successful AI integration. This approach includes ensuring proper knowledge sharing, effective team structures, and employee acceptance of new processes. Discussions on skillset development, the use of AI in areas including fraud protection, and the growing importance of data infrastructure were also examined.
Lastly, the meeting underscored the potential risks associated with AI, such as over-reliance on third-party vendors and the need to monitor potential future developments, while acknowledging its ability to enhance human decision-making rather than replace or displace it. At the end of the discussion, Dr. Bauer-Weiler posed a question to the panelists asking them shared their perspectives on AI and its perceived impact on the financial industry within the next ten years. Responses focused on the fact that the technology will continue to improve personal experiences, including ‘far more adjusted products for the individual,’ i.e. a more personalized approach and continue to allow us to leverage data, i.e. ‘receiving a response to a complex policy issue in less than five seconds.’
