EC published a report that presents results of a study on the use of technologies based on artificial intelligence in EU. The study, which was conducted by Ipsos and iCite for EC, covered all sectors, including the financial sector. It is intended to help EC in shaping future policy initiatives in the field of artificial intelligence. Overall, the key challenges to the adoption of artificial intelligence that emerged from the study are hiring the right talent, cost of adopting artificial intelligence and adapting operational processes, reducing uncertainty and liability for potential damages, data standardization, and regulatory obstacles.
The study was intended to help monitor the adoption of artificial intelligence in member states and further assess the challenges faced by enterprises, both internally and externally, in the use of artificial intelligence. About 9,640 enterprises participated in the study between January 2020 and March 2020. The five key performance indicators measured by the survey were awareness, adoption, sourcing, and external and internal obstacles to adoption of artificial intelligence. The adoption of artificial intelligence varies significantly based on company size, with large enterprises being most likely to use at least one technological application of artificial intelligence. Differences related to company size are slightly more pronounced when focusing on enterprises using two or more artificial intelligence technologies. While 39% of large enterprises with more than 250 employees use two or more artificial intelligence technologies, this figure is only 21% for micro enterprises with 5 to 9 employees, 22% for small enterprises 10 to 49 employees, and in between (30%) for medium-size enterprises with 50 to 249 employees.
With respect to the financial and insurance sector, the following are the key findings of the study:
- Plans to use artificial intelligence technologies in the next two years also vary by sector. The highest growth prospects are foreseen in the finance and insurance sector (27%). Many other sectors fall close to the global average (18%) of businesses that plan to use artificial intelligence in the next two years.
- The information technologies and the financial and insurance sectors experiment with multiple artificial intelligence technologies.
- The financial and insurance sector, which is vulnerable to the risk of wire fraud, seems to utilize artificial intelligence to automate fraud detection. Other uses of artificial intelligence technologies in this sector include anomaly detection, forecasting, and process automation, with prevalence in nearly a quarter of the sub-population.
- The financial and insurance sector (31%) is relatively less likely to perceive lack of funding as a major external obstacle to adopting artificial intelligence; however, enterprises operating in this sector (40%) are more likely to be concerned with the strict standards for data exchange.
- Looking at company size, for most skills needs, it is the largest enterprises (more than 250 employees) that find the skills listed as lacking, with the exception of robotics skills. When it comes to sector differences,
programming skills needs are most pronounced in the financial and insurance sector (59%)
Keywords: Europe, EU, Banking, Insurance, Fintech, Artificial Intelligence, Survey Results, EC
Previous ArticleEC Seeks Views for CDR on Non-Financial Sustainability Disclosures
HKMA has published a circular that sets out the regulatory and reporting treatment for loans that participating authorized institutions may grant to eligible borrowers under the 100% Personal Loan Guarantee Scheme.
ECB published the results of the assessment of internal models that banks use to calculate risk-weighted assets for credit, market, and counterparty credit risks.
PRA published a statement on the regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, or MGS.
FCA is consulting, via CP21/7, on the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR).
HM Treasury and BoE announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential central bank digital currency in UK.
EIOPA published an opinion to set out its expectations on the supervision of the integration of climate change risk scenarios by insurers in their Own Risk and Solvency Assessment (ORSA).
Bundesbank published two circulars on AnaCredit reporting requirements. Circular 27/2021 covers changes to the reporting of branches, additional attributes to be reported for investment funds from August 01, 2021, and updates to the list of international organizations.
EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL).
BCBS has set out the strategic work priorities, as part of its the work program for 2021-22.
PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.