This article examines three aspects of the current heightened interest in “artificial intelligence” (AI) methods within the financial services sector. We begin with a review of the philosophical and conceptual timeline that has brought forward the use of autonomous analytical processes for investments. Secondly, we discuss a few applications that have already emerged in relation to the analysis of investment performance and risk, and the communication of such information to stakeholders. Finally, we close with comments on the emerging business risks that arise from the use of AI methods, and how such risks can be mitigated through sensible governance and expanded
regulation.

Dan diBartolomeo
Northfield Information Services