Comparing minds and machines: implications for financial stability
Marcus Buckmann (),
Andy Haldane () and
Anne-Caroline Hüser ()
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Marcus Buckmann: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
Andy Haldane: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
Anne-Caroline Hüser: Bank of England, Postal: Bank of England, Threadneedle Street, London, EC2R 8AH
No 937, Bank of England working papers from Bank of England
Is human or artificial intelligence more conducive to a stable financial system? To answer this question, we compare human and artificial intelligence with respect to several facets of their decision-making behaviour. On that basis, we characterise possibilities and challenges in designing partnerships that combine the strengths of both minds and machines. Leveraging on those insights, we explain how the differences in human and artificial intelligence have driven the usage of new techniques in financial markets, regulation, supervision, and policy making and discuss their potential impact on financial stability. Finally, we describe how effective mind-machine partnerships might be able to reduce systemic risks.
Keywords: Artificial intelligence; machine learning; financial stability; innovation; systemic risk (search for similar items in EconPapers)
JEL-codes: C45 C55 C63 C81 (search for similar items in EconPapers)
Pages: 37 pages
New Economics Papers: this item is included in nep-ban, nep-big, nep-cba, nep-fdg, nep-isf, nep-mon and nep-pay
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Persistent link: https://EconPapers.repec.org/RePEc:boe:boeewp:0937
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