Legal Consideration on the Use of Artificial Intelligence Technology and Self-regulation in Financial Sector: Focused on Robo-Advisors

Keun Young Lee; Hun Yeong Kwon; Jong In Lim

doi:10.1007/978-3-319-93563-8_27

Legal Consideration on the Use of Artificial Intelligence Technology and Self-regulation in Financial Sector: Focused on Robo-Advisors

Keun Young Lee, Hun Yeong Kwon, Jong In Lim

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

6 Citations (Scopus)

Abstract

Artificial Intelligence (AI) technology is being used throughout the industry due to the introduction of the era of the Fourth Industrial Revolution. In the financial industry, AI technology is used in sales and marketing, fraud and illegality prevention, credit evaluation and screening, chat-bot and etc. The robo-advisor can apply the AI technology in case of investment advisory to provide a large and cost-effective portfolio of investment information. It also has positive function to the field in the fact that it has ability to generate popular investors and create new customers and services. However, robo-advisor that uses AI is still at its initial stage in introducing the technology and there are currently legal, institutional and policy limitations in providing comprehensive and customized advisory services. Thus, at first, this paper will consider the area of legal argument on the issues related to AI on the legal status and liability, financial IT, security and privacy. And focused on robo-advisor, the main issues concerning the current legal system and security self-regulatory method are elucidated and analyzed to provide the basic direction of regulation for development of utilization of AI technology in financial sector. In an environment that is shifting from ex-ante regulation to ex-post regulation, which is a current paradigm of financial IT security regulation, in order to modernize the regulations for the digital age, we propose specific measures to strengthen the use of regulatory sandbox as an autonomous regulatory scheme for the use of new technologies such as AI.

Original language	English
Title of host publication	Information Security Applications - 18th International Conference, WISA 2017, Revised Selected Papers
Editors	Brent ByungHoon Kang, Taesoo Kim
Publisher	Springer Verlag
Pages	323-335
Number of pages	13
ISBN (Print)	9783319935621
DOIs	https://doi.org/10.1007/978-3-319-93563-8_27
Publication status	Published - 2018
Event	18th World International Conference on Information Security and Application, WISA 2017 - Jeju Island, Korea, Republic of Duration: 2017 Aug 24 → 2017 Aug 26

Publication series

Name	Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)
Volume	10763 LNCS
ISSN (Print)	0302-9743
ISSN (Electronic)	1611-3349

Other

Other	18th World International Conference on Information Security and Application, WISA 2017
Country/Territory	Korea, Republic of
City	Jeju Island
Period	17/8/24 → 17/8/26

Bibliographical note

Publisher Copyright:
© 2018, Springer International Publishing AG, part of Springer Nature.

Keywords

Artificial Intelligence
Deep learning
Information security
Personal information protection
Privacy
Robo-advisors
Self-regulation

ASJC Scopus subject areas

Theoretical Computer Science
General Computer Science

Access to Document

10.1007/978-3-319-93563-8_27

Cite this

Lee, K. Y., Kwon, H. Y., & Lim, J. I. (2018). Legal Consideration on the Use of Artificial Intelligence Technology and Self-regulation in Financial Sector: Focused on Robo-Advisors. In B. B. Kang, & T. Kim (Eds.), Information Security Applications - 18th International Conference, WISA 2017, Revised Selected Papers (pp. 323-335). (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 10763 LNCS). Springer Verlag. https://doi.org/10.1007/978-3-319-93563-8_27

Legal Consideration on the Use of Artificial Intelligence Technology and Self-regulation in Financial Sector: Focused on Robo-Advisors. / Lee, Keun Young; Kwon, Hun Yeong ; Lim, Jong In.
Information Security Applications - 18th International Conference, WISA 2017, Revised Selected Papers. ed. / Brent ByungHoon Kang; Taesoo Kim. Springer Verlag, 2018. p. 323-335 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics); Vol. 10763 LNCS).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution

Lee, KY, Kwon, HY & Lim, JI 2018, Legal Consideration on the Use of Artificial Intelligence Technology and Self-regulation in Financial Sector: Focused on Robo-Advisors. in BB Kang & T Kim (eds), Information Security Applications - 18th International Conference, WISA 2017, Revised Selected Papers. Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics), vol. 10763 LNCS, Springer Verlag, pp. 323-335, 18th World International Conference on Information Security and Application, WISA 2017, Jeju Island, Korea, Republic of, 17/8/24. https://doi.org/10.1007/978-3-319-93563-8_27

Lee KY, Kwon HY , Lim JI. Legal Consideration on the Use of Artificial Intelligence Technology and Self-regulation in Financial Sector: Focused on Robo-Advisors. In Kang BB, Kim T, editors, Information Security Applications - 18th International Conference, WISA 2017, Revised Selected Papers. Springer Verlag. 2018. p. 323-335. (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)). doi: 10.1007/978-3-319-93563-8_27

Lee, Keun Young ; Kwon, Hun Yeong ; Lim, Jong In. / Legal Consideration on the Use of Artificial Intelligence Technology and Self-regulation in Financial Sector : Focused on Robo-Advisors. Information Security Applications - 18th International Conference, WISA 2017, Revised Selected Papers. editor / Brent ByungHoon Kang ; Taesoo Kim. Springer Verlag, 2018. pp. 323-335 (Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics)).

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Legal Consideration on the Use of Artificial Intelligence Technology and Self-regulation in Financial Sector: Focused on Robo-Advisors

Abstract

Publication series

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Bibliographical note

Keywords

ASJC Scopus subject areas

Access to Document

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