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Finextra
03-06-2025
- Business
- Finextra
What is AI bias?
0 This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The term 'AI bias' refers to situations whereby an artificial intelligence (AI) system produces prejudiced results, as a consequence of flaws in its machine learning process. Often, AI bias mirrors society's inequalities, be they around race, gender, class, nationality, and so on. In this instalment of Finextra's Explainer series, we ask where bias in AI originates, the consequence of feeding models skewed data, and how the risks can be mitigated. The sources of bias AI bias can develop in three key areas, namely: 1. The data fed to the model If the data used to train an AI is not representative of the real world, and contains existing societal biases, the model will ingrain these prejudices and perpetuate them in its decisioning. 2. The algorithms The very design of an AI algorithm can also introduce bias and misrepresentation. Some algorithms may overstate or understate patterns in data – resulting in skewed predictions. 3. The programmed objectives The goals that an AI system is programmed to achieve can also be biased. If objectives are not designed with fairness and equity in mind, the engine may discriminate against certain groups. Loan applications: A case study So, what relevance does AI bias have to the financial services industry? Tools powered by AI are currently being rolled out by financial institution (FI)s across the globe. Indeed, AI is being deployed to automate operations; detect fraud; manage economic risk; trade algorithmically; design personalised products; support data analytics and reporting; and even improve customer services. This technology is embedding itself in bank operations, and our dependency on it will only become deeper. It is vital for the integrity of our financial systems, therefore, that AI bias is identified, understood, and controlled. For example, in the world of loan applications AI-powered approval systems are increasingly being leveraged to streamline banks' back-office processes. In some cases, loans have been denied to individuals from certain socioeconomic backgrounds, as a result of bias baked into AI models' data or algorithms. In 2021, an investigation by The Markup found lenders were more likely to deny mortgages to people of colour than to white people with similar financial characteristics. Indeed, AI-powered mortgage approval systems meant that 80% of black applicants were more likely to be rejected, along with 40% of Latinos, and 70% of Native Americans. Unchecked AI bias and its consequences Failing to address AI bias is not just discriminatory for the end-users of financial services. It can also result in legal liabilities, reputational damage, financial and operational risks, as well as regulatory non-compliance, for the institutions. The European Union (EU)'s AI Act compels providers of AI systems to ensure their training, validation, and testing datasets stand up to an appropriate examination of biases and correction measures. Failure to meet this instruction could trigger penalties and fines. Operational and ethical issues aside, allowing bias in AI to fester is simply bad for business. Indeed, bias can reduce the overall accuracy and effectiveness of AI tools – hindering their potential to deliver on the outcomes they were designed to. Mitigating the risks The fuel of today's industrial revolution, also known as Industry 4.0, is data – and the locomotive that it powers is the intelligent system. If the fuel is not refined (and bias-free) it will damage both AI's ability to run efficiently and consumers' trust in the technology itself. Though bias in datasets may never be entirely erased, it is incumbent on AI providers and the institutions that deploy it to mitigate the risks. Banks must strive for data diversity to ensure training data is representative. Algorithm design must be reviewed to guarantee processes are fair and equitable, and all AI systems should become transparent and explainable, so that any flaws can be ironed out. Supporting banks' efforts with these challenges are bias detection and mitigation tools, which help to flag and remedy cases of AI bias, as and when they appear.
Yahoo
02-06-2025
- Business
- Yahoo
CME Group Berhad Second Quarter 2025 Earnings: EPS: RM0.007 (vs RM0.001 loss in 2Q 2024)
Revenue: RM12.1m (up 2.4% from 2Q 2024). Net income: RM7.19m (up from RM1.26m loss in 2Q 2024). Profit margin: 59% (up from net loss in 2Q 2024). EPS: RM0.007 (up from RM0.001 loss in 2Q 2024). We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. All figures shown in the chart above are for the trailing 12 month (TTM) period CME Group Berhad's share price is broadly unchanged from a week ago. It's necessary to consider the ever-present spectre of investment risk. We've identified 5 warning signs with CME Group Berhad (at least 3 which are concerning), and understanding these should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
25-05-2025
- Business
- Yahoo
Reco International Group Second Quarter 2025 Earnings: CA$0.006 loss per share (vs CA$0.003 loss in 2Q 2024)
Revenue: CA$348.9k (down 21% from 2Q 2024). Net loss: CA$288.2k (loss widened by 84% from 2Q 2024). CA$0.006 loss per share (further deteriorated from CA$0.003 loss in 2Q 2024). We've discovered 5 warning signs about Reco International Group. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period Reco International Group shares are down 40% from a week ago. It's necessary to consider the ever-present spectre of investment risk. We've identified 5 warning signs with Reco International Group (at least 4 which make us uncomfortable), and understanding these should be part of your investment process. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
25-05-2025
- Business
- Yahoo
YB Ventures Berhad Third Quarter 2025 Earnings: RM0.022 loss per share (vs RM0.038 loss in 3Q 2024)
Revenue: RM14.9m (down 13% from 3Q 2024). Net loss: RM6.53m (loss narrowed by 41% from 3Q 2024). RM0.022 loss per share (improved from RM0.038 loss in 3Q 2024). We've discovered 4 warning signs about YB Ventures Berhad. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period YB Ventures Berhad shares are down 9.1% from a week ago. Before you take the next step you should know about the 4 warning signs for YB Ventures Berhad that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
17-05-2025
- Business
- Yahoo
New Era Helium First Quarter 2025 Earnings: US$0.24 loss per share (vs US$0.13 loss in 1Q 2024)
Net loss: US$3.32m (loss widened by 287% from 1Q 2024). US$0.24 loss per share (further deteriorated from US$0.13 loss in 1Q 2024). We've discovered 6 warning signs about New Era Helium. View them for free. All figures shown in the chart above are for the trailing 12 month (TTM) period New Era Helium shares are down 17% from a week ago. Before you take the next step you should know about the 6 warning signs for New Era Helium that we have uncovered. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
