How does the chapter suggest addressing the challenges of algorithmic governance in AI applications within finance?

The chapter suggests addressing algorithmic governance challenges in AI applications within finance by adopting fairness-aware machine learning, implementing explainable AI, and establishing legal requirements for ethical compliance. It emphasizes the importance of involving stakeholders from academia, business, and government to promote responsible AI that ensures fairness, transparency, and accountability.

To tackle the challenges of algorithmic governance in AI applications in finance, the chapter advocates for several strategies. These include the adoption of fairness-aware machine learning techniques and the implementation of explainable AI to enhance transparency. Additionally, it calls for a legal framework that mandates ethical compliance, engaging various stakeholders such as academia, businesses, and government entities. By addressing these issues, financial institutions can work towards creating AI systems that are fair, transparent, and accountable, while also protecting consumer privacy.