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Barcelona 7: Artificial Intelligence in Finance

Author

Listed:
  • Foucault, Thierry

    (HEC Paris - Finance Department)

  • Gambacorta, Leonardo

    (Bank for International Settlements (BIS); Centre for Economic Policy Research (CEPR))

  • Jiang, Wei

    (Emory University Goizueta Business School; ECGI; NBER)

  • Vives, Xavier

    (University of Navarra - IESE Business School; Centre for Economic Policy Research (CEPR); CESifo (Center for Economic Studies and Ifo Institute for Economic Research); European Corporate Governance Institute (ECGI))

Abstract

The seventh report in The Future of Banking series, part of the Banking Initiative at IESE Business School, examines the fundamental transformations induced by artificial intelligence and the policy challenges it raises. It focuses on three main themes: the use of AI in financial intermediation, central banking and policy, and regulatory challenges; the implications of data abundance and algorithmic trading for financial markets; and the effects of AI on corporate finance, contracting, and governance. Across these domains, the report emphasises that while AI has the potential to improve efficiency, inclusion, and resilience, it also poses new vulnerabilities that call for adaptive regulatory responses.

Suggested Citation

  • Foucault, Thierry & Gambacorta, Leonardo & Jiang, Wei & Vives, Xavier, 2025. "Barcelona 7: Artificial Intelligence in Finance," HEC Research Papers Series 1599, HEC Paris.
    • Handle: RePEc:ebg:heccah:1599
    DOI: 10.2139/ssrn.5283385
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    References listed on IDEAS

    as
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    4. Brian M. Weller, 2018. "Does Algorithmic Trading Reduce Information Acquisition?," The Review of Financial Studies, Society for Financial Studies, vol. 31(6), pages 2184-2226.
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    Keywords

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    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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