Artificial Intelligence (AI) Is Changing the Financial Sector

Artificial intelligence (AI), which includes the identification of correlations and decision learning of personalized algorithms, can optimize the processes of banks and insurance companies promote innovation and support businesses in tailoring their products to the needs of their customers while saving costs. The development of AI also involves a fundamental ethical basis in terms of regulatory conditions, data protection and capacity building to ensure the benefits of AI for society as a whole and cooperation with partner countries. However, in developing countries, insufficient data or faulty algorithms are used to make decisions in the financial system, which is discriminatory, enhances social marginalization and hinders access to financial services.

This factsheet shares the German government's AI approach, which stipulates that the potential of AI should be harnessed for development and contribute to achieving the sustainability goals of the 2030 Agenda, and offers recommendations for stakeholders in the international development cooperation.