@misc{DanielssonUthemann2023,
	title={On the use of artificial intelligence in financial regulations and the impact on financial stability},
	author={J{\'o}n Dan{\'i}elsson and Andreas Uthemann},
	year=2023,
	month={oct},
	abstract={Artificial intelligence (AI) is making rapid inroads in financial regulations. It will benefit micro regulations, concerned with issues like consumer protection and routine banking regulations, because of ample data, short time horizons, clear objectives, and repeated decisions that leave plenty of data for AI to train on. It is different with macro regulations focused on the stability of the entire financial system. Here, infrequent and mostly unique events frustrate AI learning. Distributed human decision making in times of extreme stress has strong advantages over centralised AI decisions, which, coupled with the catastrophic cost of mistakes, raises questions about AI used in macro regulations. However, AI will likely become widely used by stealth as it takes over increasingly high level advice and decisions, driven by significant cost efficiencies, robustness and accuracy compared to human regulators. We propose six criteria against which to judge the suitability of AI use by the private sector and financial regulation.},
	url={https://ssrn.com/abstract=4604628},
}