The Double-Edged Sword: Legal Implications of AI Errors and Blockchain in Finance

Abstract

The fast wave of the integration of artificial intelligence and blockchain technology within the financial sector holds the promise of a new innovative time characterized by more efficiency and secure operations. On the other hand, such advances also pose critical, ethical and regulatory issues. This paper addresses the legal implications of AI mistakes and the use of blockchain in finance and underlines problems like bias and transparency that lead to accountability and jurisdictional complexities. It considers how such AI-driven automated systems, combined with the immutability of blockchain, result in unique regulatory challenges. This paper aims to delve into these challenges and explore the changing regulatory environment influenced by AI and blockchain in finance. By examining case studies, this paper seeks to provide a comprehensive look at the current situation and offer forward thinking advice for navigating the intricacies brought about by these revolutionary technologies. The gaps are reviewed comprehensively within current regulatory frameworks in different jurisdictions, providing policy recommendations to balance innovation with consumer protection and market stability.