By ZHONG Jianli

AI, as the key driving force behind the new wave of sci-tech revolution and industrial transformation, is integrating into various industries to foster high-quality development of China's economy. It has been applied in a number of financial services, such as intelligent customer service and credit approval, which has made them more intelligent and personalized.

Therefore, understandably, it emerged as a prominent topic of discussion at the 2024 Zhongguancun Forum in Beijing. A sub-forum of the annual conference, themed "AI for Digital Finance Development," discussed the deep integration and development prospects of AI and digital finance on April 29.

Li Mingxiao, director of the Policy Research Department of the National Financial Regulatory Administration, stressed the importance of ensuring data security and consumer privacy protection when integrating AI technology into the financial sector. He also said the financial authorities will encourage the use of AI by financial institutions to accelerate digital transformation, including recruiting professionals with a technology background in the management team.

"Beijing, relying on its rich financial resources and strong sci-tech innovation ability, has made positive progress in developing the financial technology," said Xu Xinchao, deputy secretary-general of the Beijing Municipal People's Government.

Xu said the capital has more than 1,800 fintech enterprises, of which 69 are listed, and 564 national high-tech enterprises. Beijing is now constructing a national new-generation AI innovation and development pilot zone, and a national AI innovation application pilot zone to become a hub for AI innovation with global influence.

Zhang Bo, academician of the Chinese Academy of Sciences and professor of Tsinghua University, pointed out that while the application of AI in the financial industry will improve service quality and efficiency, it will also bring security challenges.

"Although the introduction of large models can generate text and data to enhance financial services, there are also problems such as uncontrollable, untrustworthy and unrobust output, which increases financial security risks," Zhang said. In his view, the solution lies in the development of third generation AI, where basic theories should be emphasized and combine the four elements of knowledge, data, algorithms, and computing power.

In his video speech, economist and Nobel laureate Michael Spence called generative AI a super-versatile technology that can be applied to almost any field. Improving productivity through the use of AI can help mitigate the challenges the global economy faces, such as declining productivity, aging, a shrinking workforce, and supply chain issues, he added.

He also said at the same time, countries should strengthen the development of AI-related policy research and regulatory measures to prevent damaging misuse of AI, protect copyright, and make AI accessible to various sectors.

The forum was supported by the Beijing Municipal Science and Technology Commission, Zhongguancun Science Park Management Committee, and Beijing Local Financial Administration Bureau, and organized by the Beijing Haidian District Local Financial Administration, Zhongguancun Fintech Industry Development Alliance, and Zhongguancun Internet Finance Institute.