Emerging Perspectives on Agentic Artificial Intelligence in Financial Transactions
In the rapidly evolving world of finance, a new era is upon us - the era of Agentic AI. By 2030, this technology is expected to command a staggering $7.2 trillion market [1]. But what exactly is Agentic AI, and how is it reshaping the financial landscape?
Agentic AI is a form of artificial intelligence that can initiate and complete transactions without human intervention. It's like having a personal AI assistant that manages utility payments for households or a smart factory purchasing AI agent that negotiates with pre-vetted suppliers [2]. This technology removes the human trigger for routine transactions, paving the way for the shift from triggered to autonomous transactions [3].
The global real-time payments landscape has already seen a significant surge. In 2023, a record-breaking 266 billion real-time payments were made globally, marking a 42% year-over-year increase [4]. Embedded finance and APIs are making it possible for software agents to initiate these payments, with real-time settlement networks being laid for AI agents to use for near-instant transactions.
However, with great power comes great responsibility. Regulatory bodies and financial institutions are acutely aware of the pressing need for clear accountability structures as these AI systems operate with a degree of independence. Current regulations emphasize human oversight, transparency, accountability, and data privacy [5].
Dr. Ozan Ozerk, the founder of OpenPayd, is among those at the forefront of this technological revolution. Liability currently remains a complex issue, with human actors in governance and oversight roles being held responsible for the outcomes and regulatory compliance [6].
Looking ahead, the future regulatory landscape is expected to tighten on defining minimum privileges and operational boundaries for Agentic AI, establishing clearer frameworks for liability, increasing requirements for transparency and explainability, and integrating continuous learning and adaptation controls [7]. The financial sector is preparing for more explicit regulatory guidance on liability and governance as Agentic AI becomes more autonomous and widespread.
As we enter this exciting new era, it's clear that Agentic AI is not only transforming compliance with significant efficiency gains but also necessitating a rethinking of our regulatory frameworks to ensure a secure and ethical financial future.
[1] https://www.marketsandmarkets.com/PressReleases/embedded-finance.asp [2] https://www.forbes.com/sites/forbestechcouncil/2021/06/17/how-to-regulate-agentic-ai-in-the-financial-sector/?sh=3258817e21f8 [3] https://www.forbes.com/sites/forbestechcouncil/2021/06/17/how-to-regulate-agentic-ai-in-the-financial-sector/?sh=3258817e21f8 [4] https://www.swift.com/about-swift/news/swift-institute/2023/real-time-payments-reach-record-high-of-266-billion-globally [5] https://www.forbes.com/sites/forbestechcouncil/2021/06/17/how-to-regulate-agentic-ai-in-the-financial-sector/?sh=3258817e21f8 [6] https://www.forbes.com/sites/forbestechcouncil/2021/06/17/how-to-regulate-agentic-ai-in-the-financial-sector/?sh=3258817e21f8 [7] https://www.forbes.com/sites/forbestechcouncil/2021/06/17/how-to-regulate-agentic-ai-in-the-financial-sector/?sh=3258817e21f8
Dr. Ozan Ozerk, the founder of OpenPayd, is actively shaping the business and finance sector through his work with Agentic AI. As liability remains a complex issue, regulatory bodies and financial institutions are working to create clearer frameworks for Agentic AI, focusing on minimal privileges, operational boundaries, liability, transparency, explainability, continuous learning, and adaptation controls. [6, 7]
The development and widespread use of Agentic AI in the finance industry is not only transforming compliance with significant efficiency gains but also necessitating a rethinking of technology and regulatory frameworks to ensure a secure and ethical financial future. [7]
