Series: Occasional Papers. 2222.
Author: Andrés Alonso-Robisco and José Manuel Carbó.
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Abstract
Recent technological advances, such as big data and cloud computing, are leading to greater use of artificial intelligence in economics and finance, and transforming fundamental aspects of both financial institutions and supervisors. In this paper we review the main features of this transformation, especially the use of machine learning algorithms for forecasting, and we detail some of the most relevant uses of artificial intelligence today, such as for credit scoring, fraud control and macroeconomic forecasting. To this end, we make significant use of the debates that took place during the 1st conference on Artificial Intelligence applied to Financial Services, organised by the Banco de España on 17 June 2022. We conclude with a reflection on the coexistence of this technology with traditional econometric models, and the need to manage new risk factors associated with its use, such as the interpretability of the results.