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Can someone explain like I'm 5 as to why AI is so important in banking? In my experience, AI seems kinda... dumb. Why implement it in the financial sector? I understand the deal with bidding for stocks and stuff, but that's been around for at least a few years now, if not longer.

What is it that the EU is afraid of here? Why is AI so important?

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A ton of stuff in banking is based on soft logic and human intervention. My first guess would be fraud detection.

False detection rates suck enough - I can't imagine how awesome hallucinated fraud detection will be.

They're probably already using ML for this, just older forms of it.

I would say almost certainly. I worked for a large insurer a decade ago and they were using ML models for predicting some kinds of home insurance risk (I want to say earthquakes and maybe flooding, but it wasn’t my team and it’s been a decade).

Get BBVA USA branch, no hallucination needed, their system marked any use of their payment cards as a fraud. Useless bank.

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