How Artificial Intelligence (AI) is

Reshaping Finance, the Risks it Poses,

and Building a Mitigated Future
Exploring the Opportunities and Risks of Artificial Intelligence in the Financial World

By : Adityo Hutomo Sitepu | Senior Investment Manager - CHEC Indonesia

Table of contents
01 02
Introduction AI at work

03 04
AI & the World Hidden Risk

05 06
How to Mitigate Human Factor
The Introduction

The financial world, once a domain of human intuition

and meticulous calculations, is undergoing a seismic shift.
Artificial intelligence (AI) is rapidly transforming how
financial institutions operate, offering a potent mix of
opportunities and risks.

Artificial intelligence (AI) is rapidly transforming how

financial institutions operate, offering a potent mix of
opportunities and risks.
From automating tedious tasks to predicting market
trends, AI's influence extends across the entire financial
spectrum, impacting institutions, investors, and
consumers alike.
AI at Work
INTUIT is one organization
using AI to improve data analysis
around financial planning for clients,
with over 730 million “AI-driven
consumer interactions per year, leading
to 58 billion machine learning
predictions per day.”

PWC is using AI similarly, to better

inform consulting through natural
language processing, machine learning,
deep learning, model operations,
automated ML, digital twins, generative
AI, embodied AI, responsible AI, and
more. The company is investing $1B
over the next three years to “expand and
scale” AI capabilities, as it’s clear that
more organizations are starting to
recognize the benefits of AI for financial
reporting and accounting practices.
Areas where AI is reshaping
the financial world

Automated
Enhanced Risk Algorithmic Financial
Management Trading Services
Fraud Detection
and Prevention
Personalized
Financial Advice
The Hidden Risk
While AI offers undeniable
benefits, its integration into the
financial world also presents
significant risks
● Black Box Problem
● Algorithmic Bias
● Job Displacement
● Cybersecurity Threats
● Algorithmic Collusion
To harness the power of AI while mitigating its risks, a
multi-pronged approach is necessary.

Building Human-AI Developing Explainable AIPromoting Data Diversity

Prioritizing Cybersecurity Regulation and
Collaboration Oversight
The Human Factor
01 As AI continues to evolve, ongoing education
and training for human employees will be
essential to ensure they can effectively
collaborate with AI and mitigate potential
risks.

02 Ultimately, the success of AI in finance hinges

on the human factor.

03 Financial institutions need to invest in

building a culture of responsible AI, fostering
ethical considerations throughout the
development and deployment of AI systems.
Thanks!
Do you have any questions?
adityo@chec.co.id
+6281931359042

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