The AI Revolution: Opportunities and Challenges for the Finance Sector

This report examines Artificial Intelligence (AI) in the financial sector, outlining its potential to revolutionise the industry and identify its challenges. It underscores the criticality of a well-rounded understanding of AI, its capabilities, and its implications to effectively leverage its potential while mitigating associated risks. The potential of AI potential extends from augmenting existing operations to paving the way for novel applications in the finance sector. The application of AI in the financial sector is transforming the industry. Its use spans areas from customer service enhancements, fraud detection, and risk management to credit assessments and high-frequency trading. However, along with these benefits, AI also presents several challenges. These include issues related to transparency, interpretability, fairness, accountability, and trustworthiness. The use of AI in the financial sector further raises critical questions about data privacy and security. A further issue identified in this report is the systemic risk that AI can introduce to the financial sector. Being prone to errors, AI can exacerbate existing systemic risks, potentially leading to financial crises. Regulation is crucial to harnessing the benefits of AI while mitigating its potential risks. Despite the global recognition of this need, there remains a lack of clear guidelines or legislation for AI use in finance. This report discusses key principles that could guide the formation of effective AI regulation in the financial sector, including the need for a risk-based approach, the inclusion of ethical considerations, and the importance of maintaining a balance between innovation and consumer protection. The report provides recommendations for academia, the finance industry, and regulators

How to Conduct Rigorous Supervised Machine Learning in Information Systems Research: The Supervised Machine Learning Reportcard [in press]

Within the last decade, the application of supervised machine learning (SML) has become increasingly popular in the field of information systems (IS) research. Although the choices among different data preprocessing techniques, as well as different algorithms and their individual implementations, are fundamental building blocks of SML results, their documentation—and therefore reproducibility—is inconsistent across published IS research papers. This may be quite understandable, since the goals and motivations for SML applications vary and since the field has been rapidly evolving within IS. For the IS research community, however, this poses a big challenge, because even with full access to the data neither a complete evaluation of the SML approaches nor a replication of the research results is possible. Therefore, this article aims to provide the IS community with guidelines for comprehensively and rigorously conducting, as well as documenting, SML research: First, we review the literature concerning steps and SML process frameworks to extract relevant problem characteristics and relevant choices to be made in the application of SML. Second, we integrate these into a comprehensive “Supervised Machine Learning Reportcard (SMLR)” as an artifact to be used in future SML endeavors. Third, we apply this reportcard to a set of 121 relevant articles published in renowned IS outlets between 2010 and 2018 and demonstrate how and where the documentation of current IS research articles can be improved. Thus, this work should contribute to a more complete and rigorous application and documentation of SML approaches, thereby enabling a deeper evaluation and reproducibility / replication of results in IS research

Detecting Cryptojacking Web Threats: An Approach with Autoencoders and Deep Dense Neural Networks

With the growing popularity of cryptocurrencies, which are an important part of day-to-day transactions over the Internet, the interest in being part of the so-called cryptomining service has attracted the attention of investors who wish to quickly earn profits by computing powerful transactional records towards the blockchain network. Since most users cannot afford the cost of specialized or standardized hardware for mining purposes, new techniques have been developed to make the latter easier, minimizing the computational cost required. Developers of large cryptocurrency houses have made available executable binaries and mainly browser-side scripts in order to authoritatively tap into users’ collective resources and effectively complete the calculation of puzzles to complete a proof of work. However, malicious actors have taken advantage of this capability to insert malicious scripts and illegally mine data without the user’s knowledge. This cyber-attack, also known as cryptojacking, is stealthy and difficult to analyze, whereby, solutions based on anti-malware extensions, blocklists, JavaScript disabling, among others, are not sufficient for accurate detection, creating a gap in multi-layer security mechanisms. Although in the state-of-the-art there are alternative solutions, mainly using machine learning techniques, one of the important issues to be solved is still the correct characterization of network and host samples, in the face of the increasing escalation of new tampering or obfuscation techniques. This paper develops a method that performs a fingerprinting technique to detect possible malicious sites, which are then characterized by an autoencoding algorithm that preserves the best information of the infection traces, thus, maximizing the classification power by means of a deep dense neural network

Computational Methods for Medical and Cyber Security

Over the past decade, computational methods, including machine learning (ML) and deep learning (DL), have been exponentially growing in their development of solutions in various domains, especially medicine, cybersecurity, finance, and education. While these applications of machine learning algorithms have been proven beneficial in various fields, many shortcomings have also been highlighted, such as the lack of benchmark datasets, the inability to learn from small datasets, the cost of architecture, adversarial attacks, and imbalanced datasets. On the other hand, new and emerging algorithms, such as deep learning, one-shot learning, continuous learning, and generative adversarial networks, have successfully solved various tasks in these fields. Therefore, applying these new methods to life-critical missions is crucial, as is measuring these less-traditional algorithms' success when used in these fields

Hardware and Software Optimizations for Accelerating Deep Neural Networks: Survey of Current Trends, Challenges, and the Road Ahead

Currently, Machine Learning (ML) is becoming ubiquitous in everyday life. Deep Learning (DL) is already present in many applications ranging from computer vision for medicine to autonomous driving of modern cars as well as other sectors in security, healthcare, and finance. However, to achieve impressive performance, these algorithms employ very deep networks, requiring a significant computational power, both during the training and inference time. A single inference of a DL model may require billions of multiply-and-accumulated operations, making the DL extremely compute-and energy-hungry. In a scenario where several sophisticated algorithms need to be executed with limited energy and low latency, the need for cost-effective hardware platforms capable of implementing energy-efficient DL execution arises. This paper first introduces the key properties of two brain-inspired models like Deep Neural Network (DNN), and Spiking Neural Network (SNN), and then analyzes techniques to produce efficient and high-performance designs. This work summarizes and compares the works for four leading platforms for the execution of algorithms such as CPU, GPU, FPGA and ASIC describing the main solutions of the state-of-the-art, giving much prominence to the last two solutions since they offer greater design flexibility and bear the potential of high energy-efficiency, especially for the inference process. In addition to hardware solutions, this paper discusses some of the important security issues that these DNN and SNN models may have during their execution, and offers a comprehensive section on benchmarking, explaining how to assess the quality of different networks and hardware systems designed for them

Explainable Artificial Intelligence Applications in Cyber Security: State-of-the-Art in Research

This survey presents a comprehensive review of current literature on Explainable Artificial Intelligence (XAI) methods for cyber security applications. Due to the rapid development of Internet-connected systems and Artificial Intelligence in recent years, Artificial Intelligence including Machine Learning and Deep Learning has been widely utilized in the fields of cyber security including intrusion detection, malware detection, and spam filtering. However, although Artificial Intelligence-based approaches for the detection and defense of cyber attacks and threats are more advanced and efficient compared to the conventional signature-based and rule-based cyber security strategies, most Machine Learning-based techniques and Deep Learning-based techniques are deployed in the “black-box” manner, meaning that security experts and customers are unable to explain how such procedures reach particular conclusions. The deficiencies of transparencies and interpretability of existing Artificial Intelligence techniques would decrease human users’ confidence in the models utilized for the defense against cyber attacks, especially in current situations where cyber attacks become increasingly diverse and complicated. Therefore, it is essential to apply XAI in the establishment of cyber security models to create more explainable models while maintaining high accuracy and allowing human users to comprehend, trust, and manage the next generation of cyber defense mechanisms. Although there are papers reviewing Artificial Intelligence applications in cyber security areas and the vast literature on applying XAI in many fields including healthcare, financial services, and criminal justice, the surprising fact is that there are currently no survey research articles that concentrate on XAI applications in cyber security. Therefore, the motivation behind the survey is to bridge the research gap by presenting a detailed and up-to-date survey of XAI approaches applicable to issues in the cyber security field. Our work is the first to propose a clear roadmap for navigating the XAI literature in the context of applications in cyber security

The Proceedings of the 23rd Annual International Conference on Digital Government Research (DGO2022) Intelligent Technologies, Governments and Citizens June 15-17, 2022

The 23rd Annual International Conference on Digital Government Research theme is “Intelligent Technologies, Governments and Citizens”. Data and computational algorithms make systems smarter, but should result in smarter government and citizens. Intelligence and smartness affect all kinds of public values - such as fairness, inclusion, equity, transparency, privacy, security, trust, etc., and is not well-understood. These technologies provide immense opportunities and should be used in the light of public values. Society and technology co-evolve and we are looking for new ways to balance between them. Specifically, the conference aims to advance research and practice in this field. The keynotes, presentations, posters and workshops show that the conference theme is very well-chosen and more actual than ever. The challenges posed by new technology have underscored the need to grasp the potential. Digital government brings into focus the realization of public values to improve our society at all levels of government. The conference again shows the importance of the digital government society, which brings together scholars in this field. Dg.o 2022 is fully online and enables to connect to scholars and practitioners around the globe and facilitate global conversations and exchanges via the use of digital technologies. This conference is primarily a live conference for full engagement, keynotes, presentations of research papers, workshops, panels and posters and provides engaging exchange throughout the entire duration of the conference

Proceedings of Abstracts, School of Physics, Engineering and Computer Science Research Conference 2022

© 2022 The Author(s). This is an open-access work distributed under the terms of the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited. For further details please see https://creativecommons.org/licenses/by/4.0/. Plenary by Prof. Timothy Foat, ‘Indoor dispersion at Dstl and its recent application to COVID-19 transmission’ is © Crown copyright (2022), Dstl. This material is licensed under the terms of the Open Government Licence except where otherwise stated. To view this licence, visit http://www.nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: [email protected] present proceedings record the abstracts submitted and accepted for presentation at SPECS 2022, the second edition of the School of Physics, Engineering and Computer Science Research Conference that took place online, the 12th April 2022

Multidisciplinary perspectives on Artificial Intelligence and the law

This open access book presents an interdisciplinary, multi-authored, edited collection of chapters on Artificial Intelligence (‘AI’) and the Law. AI technology has come to play a central role in the modern data economy. Through a combination of increased computing power, the growing availability of data and the advancement of algorithms, AI has now become an umbrella term for some of the most transformational technological breakthroughs of this age. The importance of AI stems from both the opportunities that it offers and the challenges that it entails. While AI applications hold the promise of economic growth and efficiency gains, they also create significant risks and uncertainty. The potential and perils of AI have thus come to dominate modern discussions of technology and ethics – and although AI was initially allowed to largely develop without guidelines or rules, few would deny that the law is set to play a fundamental role in shaping the future of AI. As the debate over AI is far from over, the need for rigorous analysis has never been greater. This book thus brings together contributors from different fields and backgrounds to explore how the law might provide answers to some of the most pressing questions raised by AI. An outcome of the Católica Research Centre for the Future of Law and its interdisciplinary working group on Law and Artificial Intelligence, it includes contributions by leading scholars in the fields of technology, ethics and the law.info:eu-repo/semantics/publishedVersio