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.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
A.T. Kerney: Insights from the A.T. Kearney 2015 robo-advisory services study, June 2015
Turing, A.M.: Computing machinery and intelligence. MIND 49, 433–460
McCarthy, J., Minsky, M.L., Rochester, N., Shannon, C.E.: A proposal for the Dartmouth summer research project on artificial intelligence. http://www-formal.stanford.edu/jmc/history/dartmouth/dartmouth.html
Searle, J.R.: Minds, brains, and programs. Behav. Brain Sci. 3(3), 417–457 (1980)
Russell, S., Norvig, P.: Artificial Intelligence: A Modern Approach. Prentice-Hall Inc., Upper Saddle River (1995)
Darling, K.: Extending legal rights to social robots, Presented at We Robot Conference, April 2012
Karnow, C.E.A.: The application of traditional tort theory to embodied machine intelligence, Paper Presented at The Robotics and the Law Conference. Center for Internet and Society (Stanford Law School), April 2013
Lee, Y.-C.: Intelligent service robot - a study on the improvement of legal and institutional system. TTA J. (101). Special Report
Kim, Y.M.: Artificial intelligence and legal issues - focusing on the legal issues of AI’s output, SPRi issue Report, 6 June 2016
IEEE: Ethically aligned design version 1, 13 December 2016
Lee, W.T.: EU algorithm regulatory issues and policy implications. KISDI, December 2016
Lawrence, L.: Code: And Other Laws of Cyberspace Version 2.0. Basic Books, New York City (2006)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2018 Springer International Publishing AG, part of Springer Nature
About this paper
Cite this paper
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: Kang, B., Kim, T. (eds) Information Security Applications. WISA 2017. Lecture Notes in Computer Science(), vol 10763. Springer, Cham. https://doi.org/10.1007/978-3-319-93563-8_27
Download citation
DOI: https://doi.org/10.1007/978-3-319-93563-8_27
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-93562-1
Online ISBN: 978-3-319-93563-8
eBook Packages: Computer ScienceComputer Science (R0)