:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/bloomberglinea/VUTBYUIACRCWVBUL7ZUQHR4ST4.jpg "The algorithm can decide who gets the next bank bailout")
Bloomberg — Public administration in a nutshell they will be able to predict whether a possible bank bailout will ultimately result in savings for citizens, using AI (artificial intelligence) instruments created at two London universities.
According to reports from UCL and Queen Mary University of London, the the algorithm determines whether a bank bailout operation is a good strategy for taxpayers. In addition, it is suggested which company to redeem, as well as how much money to use.
AI tools, featured in a new peer-reviewed paper in Nature Communications, has been tested by the author using the data European Banking Authority from a network of thirty-five financial institutions on the European continent.
This will serve for officials “concretely assess the economic consequences, which means verify whether the bailout is in the best interest of citizens, or if it is more profitable to let bankrupt the bank“, he pointed Neophytos Rhodosthenus, one of the authors of this work, in a press release. “Our technology can be freely used by banking authorities as an instrument for making related decisions.”
Various financial companies were nationalized during the 2008 crisis, with taxpayers paying billions of pounds to support entities such as Royal Bank of Scotland, now NatWest Group Plc. This intervention is still unraveling, and the UK remains NatWest’s largest shareholder.
Read more at Bloomberg.com
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