Whitepaper: The use of AI is on the rise in the financial sector. Utilizing machine learning algorithms to make decisions and predictions based on the available data can be highly valuable. AI offers benefits to both financial service providers and its customers by improving service and reducing costs. Examples of AI use cases in the financial sector are: identity verification in client onboarding, transaction data analysis, fraud detection in claims management, anti-money laundering monitoring, price differentiation in car insurance, automated analysis of legal documents, and the processing of loan applications.
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Multilevel models using logistic regression (MLogRM) and random forest models (RFM) are increasingly deployed in industry for the purpose of binary classification. The European Commission’s proposed Artificial Intelligence Act (AIA) necessitates, under certain conditions, that application of such models is fair, transparent, and ethical, which consequently implies technical assessment of these models. This paper proposes and demonstrates an audit framework for technical assessment of RFMs and MLogRMs by focussing on model-, discrimination-, and transparency & explainability-related aspects. To measure these aspects 20 KPIs are proposed, which are paired to a traffic light risk assessment method. An open-source dataset is used to train a RFM and a MLogRM model and these KPIs are computed and compared with the traffic lights. The performance of popular explainability methods such as kernel- and tree-SHAP are assessed. The framework is expected to assist regulatory bodies in performing conformity assessments of binary classifiers and also benefits providers and users deploying such AI-systems to comply with the AIA.
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This study provides a comprehensive analysis of the AI-related skills and roles needed to bridge the AI skills gap in Europe. Using a mixed-method research approach, this study investigated the most in-demand AI expertise areas and roles by surveying 409 organizations in Europe, analyzing 2,563 AI-related job advertisements, and conducting 24 focus group sessions with 145 industry and policy experts. The findings underscore the importance of both general technical skills in AI related to big data, machine learning and deep learning, cyber and data security, large language models as well as AI soft skills such as problemsolving and effective communication. This study sets the foundation for future research directions, emphasizing the importance of upskilling initiatives and the evolving nature of AI skills demand, contributing to an EU-wide strategy for future AI skills development.
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