Uploaded April 2025 | Updated September 2026, 2 weeks ago
02 April 2025, 1:00 pm–2:00 pm
This event was a UCL Centre for Ethics and Law Distinguished Lecture.
UCL Centre for Ethics and Law Live Stream Webinar
Building a Risk-based Framework for AI in Finance: Where is the Human in the Loop?
About this event
We need a framework for understanding and addressing the increasing role of artificial intelligence (‘AI’) both generally and specifically in finance. This presentation frames the major elements of a risk-based approach, across a range of contexts, categorised as macro, sectoral, infrastructure, criminality, and culture. From the sectoral context, this framework should focus on human responsibility as central to addressing the AI ‘black box’ problem — that is, the risk of an AI producing undesirable results that are unrecognised or unanticipated due to people’s difficulties in understanding the internal workings of an AI or as a result of the AI’s independent operation outside human supervision or involvement. Professor Arner argues, building on recent work including FinTech: Finance, Regulation and Technology (Cambridge University Press 2024) (with Ross Buckley and Dirk Zetzsche), that a proportional differentiated approach across these very different forms of risk is most appropriate, in order to maximise opportunities as well as risks. In the context of sectoral risks, the most effective regulatory approaches to addressing the role of AI should build on the experiences of finance to bring humans into the loop through personal responsibility regimes, thus eliminating the black box argument as a defence to responsibility and legal liability for AI operations and decisions.
Speaker: Prof Douglas Arner, Kerry Holdings Professor in Law, University of Hong Kong
Discussant: Dr Maria Lucia Passador, Bocconi University
Chair: Prof Iris H-Y Chiu, UCL Laws
02 April 2025, 1:00 pm–2:00 pm
This event was a UCL Centre for Ethics and Law Distinguished Lecture.
UCL Centre for Ethics and Law Live Stream Webinar
Building a Risk-based Framework for AI in Finance: Where is the Human in the Loop?
About this event
We need a framework for understanding and addressing the increasing role of artificial intelligence (‘AI’) both generally and specifically in finance. This presentation frames the major elements of a risk-based approach, across a range of contexts, categorised as macro, sectoral, infrastructure, criminality, and culture. From the sectoral context, this framework should focus on human responsibility as central to addressing the AI ‘black box’ problem — that is, the risk of an AI producing undesirable results that are unrecognised or unanticipated due to people’s difficulties in understanding the internal workings of an AI or as a result of the AI’s independent operation outside human supervision or involvement. Professor Arner argues, building on recent work including FinTech: Finance, Regulation and Technology (Cambridge University Press 2024) (with Ross Buckley and Dirk Zetzsche), that a proportional differentiated approach across these very different forms of risk is most appropriate, in order to maximise opportunities as well as risks. In the context of sectoral risks, the most effective regulatory approaches to addressing the role of AI should build on the experiences of finance to bring humans into the loop through personal responsibility regimes, thus eliminating the black box argument as a defence to responsibility and legal liability for AI operations and decisions.
Speaker: Prof Douglas Arner, Kerry Holdings Professor in Law, University of Hong Kong
Discussant: Dr Maria Lucia Passador, Bocconi University
Chair: Prof Iris H-Y Chiu, UCL Laws
