in core processes – in areas that are of high regulatory importance – we notice that it is used in parallel to already existing models. in the sense that both the old and the new run next to each other. this shows that, currently, there is not yet enough confidence in the new technology to replace the older technology – the risk of regulatory mistakes is still deemed too high. the financial sector as a whole is, indeed, on an ai odyssey – a long and eventful journey towards its destination. a journey with setbacks and progress. a journey with an unclear and uncertain path forward. but also, i hope, a journey that is fuelled by the very idea of becoming a financial sector that has embraced ai to its fullest potential – 1 / 4 bis - central bankers'speeches and that does so with respect for the values that underly our society, like fairness, freedom and security. rules and regulations reflect these values. they are instrumental in protecting them. and as our society changes and certain values come under pressure, rules and regulations need to change accordingly. dnb is currently supervising ai within its prudential and aml / cft mandate. with this mandate, we ensure the stability of the financial system, and the solidity and integrity of financial institutions. the european ai act, which came into effect earlier this year, broadens our mandate. in our ai supervision, we will now also take account of fundamental rights, like privacy and non - discrimination. these changes also affect the financial sector, of course. they create uncertainty. at de nederlandsche bank, however, we are committed to creating regulatory certainty around ai supervision in the financial sector, for instance in our contributions to the european supervisory authorities, and the bank of international settlements. we won't stop encouraging financial institutions to explore and experiment. at the same time, we want them to be confident in discussing their progress with us. because we believe this is part and parcel of a successful odyssey. as a supervisor, we are fully aware that ai is here to stay. already in our 2022 report'from recovery to balance ', we called for the use of machine learning in transaction monitoring and kyc risk profiling. we did this because we are convinced that it will help build better predictive models – models that will benefit financial institutions, because they can conduct more targeted and efficient due diligence. models that also benefit society as a whole. precisely because ai is capable of raising more targeted red flags

steven maijoor : 2024 - an ai odyssey speech by mr steven maijoor, executive director of supervision of the netherlands bank, at the kick - off event of the impact centre " ai4 fintech ", amsterdam, 4 october 2024. * * *'i'm sorry, dave, i'm afraid i can't do that.'this heartfelt excuse is a line from a movie. a movie that came out in 1968, a year before the first human set foot on the moon. nevertheless, the movie is largely set in space. i am talking about'2001 : a space odyssey '. and that line, that excuse i just uttered, is spoken by a computer. a computer called hal - 9000. a computer that talks, that shows emotions, that says'no '. in other words : artificial intelligence. ai. in 1968. we are now well beyond 1968. even well beyond 2001. but we are still on an odyssey. an ai odyssey. not in space. but here, on this very planet, where ai is increasingly becoming a part of our everyday lives – be it professional, be it personal. as in any odyssey, we are searching for something that brings us good fortune, but probably won't come easy. something we long for, but might take a while to find. when i look at the current, broad applications of ai, i am impressed by its potential. coming from rule - based ai, and subsequently machine learning, it is clear that we have now moved to a new era – an era in which ai still counts as a great predictive force, but is now also capable of generating content, be it texts, images or videos. and soon enough, a combination of them, in multimodal ai. nevertheless. ai may indeed have become ubiquitous, we are still far from using its full potential. whether in its different forms, from machine learning to generative ai – or in its breadth of use, from society as a whole to the financial sector in particular. as supervisors, for instance, we see that financial institutions are indeed experimenting with ai – quite a lot, actually – but at the same time, we also see that those experiments are mainly happening around the fringes of their professional activities. for instance, in customer service. and that's quite far from the core financial processes. quite far from the places that have a real regulatory impact. and remarkably, if ai is indeed used