MSCA Digital WP3 Research Seminar

The meeting will feature a short update on the activities within WP3 as well as a research seminar by Dr. Ekaterina Svetlova from the University of Twente.

Title of Talk: Ethics of sales in the investment industry in the era of AI: Empirical and normative aspects of the current practice.
Abstract: The paper that will be presented investigates the ethical dimensions of selling AI-based financial products, using examples from the real-life cases of machine learning-based investment funds. The study is the first to address the ethical challenges related to the sales of investment products based on advanced algorithms. In particular, the paper emphasizes the need for transparent communication about uncertainties and knowledge limitations associated with these products. It argues that while regulations often overlook this aspect, acknowledging and disclosing knowledge insufficiencies is crucial to inform clients accurately and avoid overselling. By applying the concept of complex sales, the paper explores the ethical obligations of sales professionals in conveying both the capabilities and limitations of AI-based products. Moreover, the paper investigates the current practices in the investment industry and provides best practice examples.