Computational Intelligence for Autonomous Finance

3Challenges and Security Issues in Autonomous Finance

Mukul Gupta¹, Deepa Gupta¹*, Nitin Agrawal² and Parth Mukul Gupta³

¹GL Bajaj Institute of Management, Greater Noida, UP, India

²Semikron Danfoss, Utica, New York, NY, USA

³Birla Institute of Technology & Sciences, Pilani, Rajasthan, India

Abstract

This chapter investigates the mind-boggling security, moral, and functional issues that comprise autonomous finance. The weaknesses of information, the consistent cybersecurity dangers, and the need to safeguard security in a digital financial environment are addressed first. Then, algorithmic bias and fairness are discussed, including dynamic inclinations and the need to maintain reasonableness in all financial activities. The chapter examines the emerging field’s significant security, moral, and functional issues. Security and protection are its primary concerns. It emphasizes the need to secure sensitive information in the digital financial system and addresses information security risks. Next, we will discuss algorithmic bias and fairness, including how decisions may be biased and how to level the playing field in financial activities. The article then explores regulatory compliance, including the challenges of understanding and following various legal frameworks and the need for transparency in financially autonomous activities. Operational risks, such as framework glitches and overreliance on technology, are also examined to offer reliable financial services. The chapter ...