Money and Machines: Navigating AI's impact on finance
Thursday, 31 August 2023
Hello Future is blue readers,
Welcome to our newsletter about European economic affairs bringing together top experts from academia and think tanks to discuss the most pressing economic challenges of today. Future is Blue is promoted by Funcas.
Today we are back covering Artificial Intelligence (AI), but this time analysing how the financial sector is using AI.
Funcas think tank has been increasing its focus on digital transformation within the financial sector and this is a subject that is present in the latest SEFO publication. We've invited Alice Faibishenko, Senior Advisor at Funcas, to talk to us about the latest trends on AI in finance.
You can find more information below about our new podcast episode, together with access to our previous show covering AI and labor markets in case you missed it. See at the bottom what we are reading these days.
New podcast episode available!
In today's Future is Blue podcast episode, we cover the following questions about AI and the financial sector:
- How AI is being adopted by the financial sector, particularly
in Europe. - What are some of the major applications of AI within financial services to date?
- Key takeaways from all this as we look to the future of AI in
banking?
AI and labor markets
In our podcast we recently talked to Maria Jepsen from Eurofound about the following questions about the impact of AI on labor markets:
- To what extent is AI particularly disruptive in comparison with the pre-AI wave of digital technology?
- The pessimistic predictions of a decade ago regarding job losses arising from digital technologies have not materialized. Should we expect a similar pattern when it comes to the employment and labour impact of AI?
- Will AI aggravate income inequalities?
- What is the role of public policies in boosting the benefits of AI for jobs and reduce risks, and what role should the EU play?
The latest Spanish and International Economic and Financial Outlook report by Funcas dedicates a full chapter to AI and the banking sector. There are also other topics in the report, including economic projections for Spain (2023-2024), the role of central banks in the context of financial turbulence and the side effects of high interest rates for the financial sector.
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What we are reading
Rebooting the European Union’s Net Zero Industry Act
The European Commission published a legislative proposal for an EU response to the US Inflation Reduction Act: the Net Zero Industry Act (NZIA). It is an unconvincing policy proposal, both for what is in it and for what is not in it, argues this Bruegel report.
Clear skies for a sustainable future: how innovation can accelerate aviation's net-zero journey
Aviation accounts for 2% of global greenhouse gas emissions and, with air travel projected to increase, these emissions are poised to escalate.
How to improve economic forecasting
Myopia and groupthink mean this science is not as evolved as it could be.
Policymaking in an age of shifts and breaks
Speech by Christine Lagarde, President of the ECB, at the annual Economic Policy Symposium "Structural Shifts in the Global Economy" organised by Federal Reserve Bank of Kansas City in Jackson Hole
Have a nice week
Raymond Torres
Funcas Europe Director