AI and Quantum Computing: High Risks or Big Boons to Fintech?

Innovation expected from artificial intelligence and quantum computing could bring security and privacy perils as well as benefits to the financial world.

Joao-Pierre S. Ruth, Senior Editor

April 15, 2024

Fintech startups and even incumbent banks continue to explore ways to leverage widely popular artificial intelligence for a host of tasks.

This includes producing and personalizing policy documents, the extraction of information from documents, and communication with customers. AI could be tasked to work with big data, which banks have plenty of, with generative AI also being put to work. There are concerns, however, about AI potentially introducing hallucinations into processes as well as the potential for bad actors to use AI to assail the security of banks and smaller fintechs.

The risks could be further compounded if quantum-powered AI, a potential future tech tag team, gets into the wrong hands -- a nightmare scenario where current encryption protection might be at risk of becoming vulnerable.

In the latest episode of DOS Won’t Hunt, Doug Hathaway, vice president of engineering with Versapay; Prashant Kelker, chief strategy officer and partner with ISG; and Sitaram Iyer, senior director of cloud native solutions with Venafi discuss ways innovations that could transform fintech might also require conversations about guardrails and safeguards as technologies converge. Though quantum computing is still down the road, AI is making moves here and now, including in fintech.

Related:AI, Bitcoin, and Distilled Spirits at New York Fintech Week

Listen to the full podcast here.

About the Author(s)

Joao-Pierre S. Ruth

Senior Editor

Joao-Pierre S. Ruth covers tech policy, including ethics, privacy, legislation, and risk; fintech; code strategy; and cloud & edge computing for InformationWeek. He has been a journalist for more than 25 years, reporting on business and technology first in New Jersey, then covering the New York tech startup community, and later as a freelancer for such outlets as TheStreet, Investopedia, and Street Fight. Follow him on Twitter: @jpruth.

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