Home Login

The Use of Artificial Intelligence in Financial Services: Navigating Innovation, Opportunity, and Risk

Author: Avi Gesser.; Charu A. Chandrasekhar.

Source: Volume 42, Number 07, July 2026 , pp.75-84(10)

Abstract:

Generative artificial intelligence (“GenAI”) is transforming the financial services industry at an unprecedented pace. What began as experimental pilot programs involving discrete back-office use cases has evolved into enterprise-wide deployments, with firms now actively encouraging the adoption of multiple sophisticated platforms. This article examines the rapid evolution and current state of AI adoption in financial services.

Keywords: Fraud Prevention; Pattern Recognition; AI-Specific Regulation; SEC Examinations and Enforcement; FINRA Enforcement; Risks of Agentic AI; Scaling Governance

Affiliations: 1: Debevoise & Plimpton LLP; 2: Debevoise.