AI RISK ASSESSMENT SPEECH

Overview of artificial intelligence and risk assessment

Risk assessment is a process of risk identification and analysis to choose the necessary safety
arrangements. In the context of artificial intelligence, risk assessment is an important tool for
identifying potential biases, errors, or other issues that could impact the safety and effectiveness
of AI systems.
To produce risk assessments with more accuracy, AI can be used because one of its core
competencies is data aggregation and interpretation. AI can help us identify and analyze potential
risks or threats more quickly and accurately than ever before, and can provide insights that might
be difficult or impossible to obtain through traditional methods. AI can also help us develop
more effective strategies for mitigating or managing risk. However, it's important to recognize
that AI is not a panacea for risk assessment, and that there are still many challenges and
limitations that must be addressed in order to ensure that AI is used safely and effectively.
Types of Al models used in risk assessment
There are several types of AI models that can be used for risk assessment in lending and
investing. Some of the most common models include:
1. Decision trees: Decision trees are a type of model that use a tree-like structure to represent
decisions and their possible consequences.
2. Random forests: Random forests are a type of model that use multiple decision trees to make
predictions. By using multiple trees, these models can help reduce the risk of overfitting, which
can occur when a model is too complex and tries to fit the data too closely.
3. Neural networks: Neural networks are a type of model that are designed to mimic the
structure of the human brain.
4. Support vector machines: Support vector machines are a type of model that are designed to
find the best way to separate different types of data. These models are often used in risk
assessment because they can help identify the boundaries between risky and non-risky
investments.
5. Gradient boosting: Gradient boosting is a type of model that uses multiple decision trees to
make predictions.