Generative artificial intelligence (genAI) has been heralded as game-changing for other areas of finance, but its potential to hallucinate may disqualify it from sensitive settlement procedures, writes Waters Technology.
Financial services firms are opting not to use the advanced technology in collateral management, judging the process to be too critical to allow for a greater possibility of error. This is despite many banks’ risk chiefs softening their initial hardline approaches to using the technology over the last year.