Educational·10 episodes total

AI and Finance── Credit, markets, investment, regulation and risk management, read through institutions and evidence, in 10 episodes

How is AI changing the machinery of finance, and what new risks does it bring? Across ten episodes this series covers credit, markets, investment and valuation, fundraising, regulation, model risk management, accounting and audit, and the flow of money into pharma, drawing on reports from public authorities and empirical research. It does not give investment advice.

Concepts — what is changing

AI in Finance Today — FSB Report and the 75% Adoption Rate

Using FSB, BIS and FSA reports, this article maps AI adoption in credit, fraud, asset management and customer service, and examines what generative AI adds to the picture.

AI and Capital Markets

Examines algorithmic trading ratios, the 2010 Flash Crash, and the herding risk of model concentration, drawing on IMF and SEC sources.

AI Capex at $725 Billion and the Distance to Revenue

Compares AI capex-to-revenue ratios with the telecom bubble, traces the three-stage revenue chain from GPUs to end users, and identifies the assumptions that drive AI-related valuations.

Practice — the field and its regulation

The Quarter AI Took 80% of Venture Capital

AI startups took 80% of global VC in Q1 2026. This article dissects mega-round concentration, circular financing between cloud providers and AI labs, and the implications for pharmaceutical AI investment.

Three Regulatory Frameworks for AI in Finance: Japan, the EU and the US

Compares Japan's FSA AI Discussion Paper 1.1, the EU AI Act's high-risk classification, and US reliance on SR 11-7 and the NAIC Model Bulletin, examining regulatory philosophies and practical steps for financial institutions.

Why SR 26-2 Excluded Generative AI

Compares SR 26-2's exclusion of generative AI, Japan FSA's eight model risk principles, and the EU AI Act's explainability mandate to outline practical validation approaches for generative AI in financial services.

PCAOB and IAASB Question AI Audit Accountability

Examines PCAOB, IAASB, and JICPA discussions on AI in audit, weighing full-population testing against professional skepticism and the locus of accountability.

Pharma, risk and outlook

$20 Billion into AI Drug Discovery, Zero FDA Approvals

Breaks down $20 billion in AI drug discovery funding across VC, partnerships, and M&A to read the structural gap between investment and clinical outcomes.

DORA's 19 Designated Providers and AI Concentration Risk

Examines how DORA's provider designations, FSB and Bank of England analyses, the 2024 CrowdStrike incident, and the 2025 AWS outage reveal the systemic risk created by AI and cloud concentration in finance.

BIS and FSB Chart the Course for AI Financial Regulation

Drawing on BIS, FSB, IMF, and ECB reports plus Japan's FSA AI discussion paper, this article maps how central banks use and regulate AI — and what pharmaceutical practitioners can learn from the financial debate.