Abstract
Generative artificial intelligence (GAI) is transforming the financial services sector (FSS), offering innovative solutions and equipping the industry with cutting-edge tools to drive value creation and operational efficiency. While the sector-specific benefits of GAI technology are substantial, effectively harnessing these opportunities depends on addressing key institutional challenges, including systemic consequences, ethical concerns, and security and privacy risks. The highly regulated FSS is one of the critical infrastructures that plays a vital role in a country's economic stability and national security, with cyberthreats posing significant risk to both. We assess the economic benefits of GAI technology, identify institutional challenges associated with its adoption, examine key regulatory initiatives, and outline a risk-mitigation framework. Our proposed solution to mitigate institutional challenges is twofold: 1) actionable institutional risk management safeguards, and 2) a baseline safety net for GAI implementation in the financial services sector.
| Original language | English |
|---|---|
| Pages (from-to) | 35-41 |
| Number of pages | 7 |
| Journal | IT Professional |
| Volume | 27 |
| Issue number | 2 |
| DOIs | |
| State | Published - 2025 |
Bibliographical note
Publisher Copyright:© 1999-2012 IEEE.
Funding
We thank the anonymous reviewers and the editor for their valuable comments, which helped us improve the content, presentation, and organization of this article. Sherali Zeadally was partially supported by a Distinguished Visiting Professorship from the University of Johannesburg, South Africa.
| Funders |
|---|
| University of Johannesburg |
ASJC Scopus subject areas
- Software
- Hardware and Architecture
- Computer Science Applications