Isaac Asimov, AI, and the Goals of Financial Regulation

Source Domain: www.bbva.com

Purpose of the Exercise: To explore how financial regulation and supervision might be improved by defining clear objectives for an AI system that controls financial regulation.
Primary Objective vs. Secondary Objectives: The initial thought is a single focus on preserving financial stability. A more comprehensive approach includes a secondary objective: improving competitiveness and economic growth contributions of the financial sector.
Comparison to Monetary Policy: The proposed secondary objective mirrors that of the ECB, which maintains price stability while supporting broader economic policies.
Economic Implications: Highlighting the importance of not disregarding the competitiveness of the financial sector, the article uses examples like setting highway speed limits to argue that ignoring trade-offs can lead to inefficient outcomes.
Lessons from Asimov’s Robotics: The text draws on Asimov’s laws of robotics to emphasize the necessity of specifying and prioritizing objectives to prevent absurd and inefficient results.

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