Machine learning methods to protect banks from risks of complex investment products

Artificial intelligence (AI) is frequently touted as a silver bullet to solve complex modeling problems. Among its many applications, it has been investigated as a tool to manage risks of complex investment products—so-called derivative contracts—in the investment banking area. Despite the multiple positive reports in this area, concerns have been raised about their practical applicability.

applications artificial artificial intelligence banking banks business concerns intelligence investment machine machine learning modeling multiple positive products protect reports risks solve tool