Ethical Challenges and Governance of Smart Algorithms Empowering Financial Technology

The application of intelligent algorithms in the financial field has significantly improved the efficiency and accuracy of financial services, but it also hides potential algorithmic ethical risks. This article first explains the application of intelligent algorithms in financial technology, and conducts an in-depth analysis of the ethical issues of intelligent algorithms in the financial field. Secondly, it defines the possible data privacy and security, algorithm discrimination, algorithm distortion, algorithm black box, and large model risks of intelligent algorithms. As well as specific ethical phenomena such as the issue of responsibility attribution, the causes of their occurrence are analyzed. Acknowledging that such dilemmas may pervade the entire life cycle from product development to application, this article elaborates on the possible social impacts and how to carry out the strategies for prevention or governance at various levels—technical, organizational, legal, and professional ethics. Finally, it was emphasized that while pursuing technological innovation and commercial benefits in the financial field, ethical considerations must be balanced, and an outlook was put forward on the development trend of intelligent algorithms in the future financial technology field.