ArmInfo. Artificial intelligence can help companies process and analyze large amounts of data to make critical decisions and be very beneficial for financial sustainability, but it also comes with a number of challenges. This was stated by Marie Briere, Head of Investor Intelligence and Academic Partnership, Amundi Investment Institute, while presenting a report on "A AI and ESG Talk " at the Acba Economic Forum 2024.
In this regard, she noted that artificial intelligence may indeed be a "black box" for companies providing data.
Marie Briere identified the lack of complete, high-quality information as the main challenges. "For example, there may be problems with the explanation of the given data, their quality, there may not be geographical data of physical coverage, nor historical data, practical information of satellite data analysis," the expert said. She also emphasized that this raises the issue of responsibility - "who is responsible for the use of data?".
The expert noted that there are also risks with data manipulation. "To understand text or voice, they use a machine. The consequence of this may be that the machine tends to manipulate the software. There is already evidence that company leaders at the strategic level manipulate communication, because they know that the algorithm is listening to them and controlling them. They avoid terms that might cause a negative reaction. Used information from social networks and scandalous articles from newspapers can also carry manipulation risks," she noted.
Among the challenges, the expert also identified the issue of market efficiency, which is very important for property managers, as well as the issue of costs. Speaking about the latter, a representative of the Amundi Investment Institute drew attention to the fact that the acquisition of alternative data, their management, implementation, integration, and analysis require new machine learning algorithms. That equates to more costs and can lead, according to Briere, to inequality between large and small companies.
The Amundi-Acba Economic Forum is being held in Armenia for the second time and aims to bring together o thought leaders, industry experts, and innovators to explore and discuss critical topics shaping the economic landscape. The Forum was organized by Amundi-Acba Asset Management CJSC.
