Artificial intelligence is pushing financial systems toward a model where machines execute transactions at scale, raising new challenges around control, oversight and infrastructure, said Microsoft and Chainalysis executives.<\/p>\n
Bill Borden, corporate vice president of worldwide financial services at Microsoft, said Tuesday that legacy systems will face increasing pressure as transaction demands grow more complex. The tipping point comes when \u201clatency, scale, complexity are starting to impact your ability to compete,\u201d forcing firms to rethink how their systems are built, he said at an event hosted by Alchemy in New York City.<\/p>\n
While automation has long been part of finance, Borden said the focus is now shifting from capability to trust. \u201cIt\u2019s not about, can technology automate \u2026 executing a hedging strategy \u2014 that can be done. The question is: can you trust it? Can you audit and control?\u201d he said.<\/p>\n
Microsoft, which offers its own AI assistant in many of its products, is developing tools to manage that transition, including systems that assign identities and permissions to AI agents and track their actions. In regulated environments, Borden said firms must be able to show \u201cwhat controlled it\u201d and whether a system \u201cfollowed the policy\u201d when decisions are made without direct human input.<\/p>\n
Jonathan Levin, co-founder and CEO of Chainalysis, said the crypto sector already offers a working model of automated finance. Blockchain networks process large volumes of transactions through smart contracts and software-driven wallets, creating what he described as an environment similar to agent-based systems. \u201cWe\u2019ve been preparing for these moments way before other parts of the financial services industry,\u201d Levin said.<\/p>\n
That experience extends to risk management. Levin pointed to efforts to track illicit funds across \u201cthousands of different wallets\u201d as an example of the kind of monitoring needed in a system where transactions happen at scale without direct human input.<\/p>\n
Looking ahead, both executives expect a mix of systems to coexist. Levin said \u201cthe majority of commerce in 10 years time will be settled on public infrastructure,\u201d while Borden pointed to a more integrated approach linking public blockchains, private networks and existing rails.<\/p>\n
\u201cI do think traditional rails will continue to exist,\u201d Borden said, with software acting as the layer that connects them.<\/p>\n","protected":false},"excerpt":{"rendered":"Artificial intelligence is pushing financial systems toward a model where machines execute transactions at scale, raising new challenges…\n","protected":false},"author":2,"featured_media":611622,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4,450,451,3,452,453],"class_list":["post-611621","post","type-post","status-publish","format-standard","has-post-thumbnail","category-breaking-news","tag-breaking-news","tag-breakingnews","tag-headlines","tag-news","tag-top-stories","tag-topstories"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/611621","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=611621"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/611621\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/611622"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=611621"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=611621"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=611621"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}