Can AI combat gender bias in financial tech?

bias

As Women’s Month brings attention to the challenges women face in the tech industry, it’s crucial to consider the roles AI assistants, such as Siri and Alexa, play in shaping our perceptions. These ever-present, seemingly passive assistants are often depicted with female voices, perpetuating subtle gender biases. But why is this the case, and how can we address it?

According to RelyComply, a company that champions diversity and the growth of all its employees, it is highly aware of the stereotypes that exist within the tech industry. It’s an industry predominantly shaped by male-dominated narratives, as seen in popular culture and news. This has contributed to the underrepresentation of women in computer science, with a quarter of female students discouraged from pursuing careers in this field. The issue becomes even more pressing with AI assistants, which, though designed to be friendly helpers, often reinforce outdated gender roles by adopting passive female voices.

While AI offers numerous benefits, there are worrying trends emerging as Generative AI (GenAI) becomes more widespread. Initially designed to alleviate tedious tasks, GenAI risks replacing human jobs, rather than enhancing efficiency. This shift could fuel an “us vs. machine” mentality, overshadowing the life-changing potential of AI, such as detecting early-stage diseases or uncovering criminal behaviour.

AI’s potential to perpetuate bias is a growing concern, particularly as deepfake technology continues to undermine identity and truth. The ability to create realistic digital replicas of individuals and manipulate their voices and faces has raised alarms worldwide. Denmark, for example, has taken bold steps to ensure individuals’ rights to control their own digital likeness, a crucial move in the battle against the misuse of AI.

Jakob Engel-Schmidt, Denmark’s culture minister, voiced his concern, saying: “Human beings can be run through the digital copy machine and be misused for all sorts of purposes and I’m not willing to accept that.”

As regulations around AI continue to evolve, the European Union’s AI Act is addressing the ethical concerns associated with AI in sectors like finance. AI models used for fraud detection and compliance are under scrutiny for their potential to reinforce biases, including gender biases. The root of the issue lies in how AI algorithms are trained. When AI is trained on historical datasets filled with human biases, it is likely to replicate those biases, potentially misrepresenting data and distorting outcomes.

AI assistants, particularly those designed to be ‘supportive,’ have long been associated with female voices. The United Nations highlights how gendered language in AI models can influence perceptions of women in service roles, while men are more often associated with scientific and technical positions. Additionally, a study by Johns Hopkins engineers found that AI systems with female voices were more likely to be perceived as submissive, with male users displaying aggressive behaviours or dismissive attitudes towards these voices.

These gendered biases in AI systems are dangerous, particularly in sensitive sectors like finance. Automated systems designed to detect financial crime, such as Anti-Money Laundering (AML) platforms, may fail to identify critical risks if their design is based on biased datasets. If AI systems are not transparent about the data they use or how they operate, they risk eroding customer trust and missing key compliance issues.

Amama Mahmood from the Johns Hopkins study said: “Thoughtful design – especially in how these agents portray gender – is essential to ensure effective user support without promoting harmful stereotypes. Addressing these biases in voice assistance and AI will ultimately help us create a more equitable digital and social environment.”

The challenge is clear: AI must evolve to become an active participant, not just a passive assistant. In financial technology, AI systems need to be trained in a way that removes biases and is accountable to both the customer and the regulatory bodies. Platforms that blend human oversight with AI-driven decision-making can help create a more ethical environment.

At RelyComply, we’ve built our platform with ethical considerations at the forefront, employing machine learning to accurately identify suspicious behaviours. However, we ensure full transparency by demonstrating how our models are trained and how they make decisions, ensuring that both human and machine contributions are valued equally. This cooperative approach helps to mitigate biases and ensures that AI is used responsibly in compliance and fraud detection.

AI has the potential to revolutionise industries, but it must be guided by ethical oversight. When used properly, AI can be a powerful force for good, helping to detect crime and ensure financial compliance. But the key is transparency and accountability in how AI systems are designed and operated. By addressing biases in AI, we can work towards a more inclusive and equitable future.

Read the daily RegTech news

Copyright © 2025 RegTech Analyst

Enjoyed the story? 

Subscribe to our weekly RegTech newsletter and get the latest industry news & research

Copyright © 2018 RegTech Analyst

Investors

The following investor(s) were tagged in this article.