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The artificial intelligence should benefit investors, say experts at Advocis

by

Susan Yellin

3 December 2018 13:30

Photo : Freepik

Artificial intelligence can help advisers with their clients, but Canadians must ask many questions to find out where and how are used the personal information collected in addition to whether these data are useful to the customers, have recently said experts at a symposium ofAdvocis.

“I think that from the point of view of regulation, you still need to take a step back as a counselor and determine if what you are doing is really in the best interest of your client,” said James Leong, principal legal adviser to the British Columbia Securities Commission (BCSC).

“From the point of view of regulation, we also need to ask if certain rules have a lot of sense, and if they continue to be [in the future]. New circumstances or process may not necessarily respond to what we expected and do it the way that we thought they would. “

Democratize the underserved markets

Mr. Leong stated at the symposium that artificial intelligence is constantly evolving, in particular in the field of financial services. He added that he considered that his role in the BCSC is a guard dog, to see how artificial intelligence was developing really are and how it could be used for the benefit of investors. He suggested for example that the artificial intelligence could help to democratize the underserved markets or streamline the business models of the companies.

In February 2017, the canadian securities administrators (CSA) have launched a sandbox regulatory designed specifically to help companies that want to use products, services and applications innovative across the country. At the same time, the CSA have said they want to ensure that investors are protected through the implementation of the sandbox.

It is open to business models deemed innovative in the point of view of the canadian market. The CSA will evaluate the benefits of each business model. Those who register or have a relief can then be allowed to test their products and services on the canadian market as a whole.

Familiarize yourself with the basics

According to Amel Chadi Habib, executive vice-president, information technologies at Desjardins group, it is the responsibility of each of the enterprises to be familiar with at least the basic principles. The artificial intelligence is now one of the major trends in the financial services sector, he said.

More information is analysed to help clients make investment decisions, using data, both geo-political than scientific, explained Habib. “It is no longer possible for a single human being to analyze it all and make a good recommendation to his client,” he said.

However, he added that Desjardins does not believe in the automation to 100 %, because all the generations, generation Y babyboumeurs, have indicated a wish to a type of human contact, allowing them to analyze all the information before making an important financial decision.

Mr Leong has pointed out that the artificial intelligence could be used to help customers understand areas such as risk tolerance, which will improve the quality of the decision-making of the adviser.

Privacy issues

Data privacy is a major concern, in particular for larger companies using this technology, such as Facebook. “It is time for us to begin to balance the symmetry of value on the way the data are visualized and shared in Canada,” said Mr. Habib.

“The key is to ask questions. What is it that we surrender ? And, most importantly, there is a symmetry of value added that is generated ? “

Habib has argued that the Canadians have their heads in the sand in regards to the protection of privacy. “For us, it is very simple : the personal data belong to you, not to another entity. And if you decide to give it to someone else, there must be a sharing symmetrical value. “

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