AN APPRAISAL OF THE LEGAL AND ETHICAL EFFECTS OF DEPLOYING ARTIFICIAL INTELLIGENCE IN BANKING TRANSACTIONS

Abstract

Artificial Intelligence (AI) is rapidly revolutionizing the systems of the world in a very alarming frequency. Virtually every sector of the economy is penetrated by AI technology. The banking system is among the industries experiencing the technological revolution introduced by AI. AI is now deployed to execute banking services including cash deposits and withdrawal, loan advancement, money transfer, customer account maintenance, credit worthiness evaluation, data analysis and management, etc. This evolving trend comes with antecedent benefits such as improved efficiency and speed in service delivery, risk reduction and financial security improvement. On the other hand, the innovation is not devoid of challenges including violation of protected rights by AI, data privacy security, infringement and liability issues resulting from the operations of AI in banking transactions. A major question to be addressed here is: who bears responsibility for legal liabilities incurred by AI in banking operations? The object of this work is inter alia to examine the ethical and legal liability issues arising from the operations of AI in banking transactions. Certain questions will be addressed here including the question of how the legal remedies for liabilities incurred by AI can be obtained. The work adopts doctrinal research approach comprising of primary and secondary sources of relevant materials. It is recommended that appropriate laws should be enacted to facilitate the conferment of the status of legal personality on AI and the AIs deployed for banking operations should first become artificial persons through incorporation to enable them enjoy legal rights and bear legal responsibilities for their actions.