Comparing minds and machines: implications for financial stability

Staff working papers set out research in progress by our staff, with the aim of encouraging comments and debate.
Published on 20 August 2021

Staff Working Paper No. 937

By Marcus Buckmann, Andy Haldane and Anne Caroline Hüser

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.

Comparing minds and machines: implications for financial stability

 

Give your feedback

Was this page useful?
Yes
No
Add your details...