**7. Conclusion**

In the days to come, the financial industry will show increasingly more reliance on machine learning and artificial intelligence-based emerging methods and models to leverage competitive advantages. While the regulatory and compliance will evolve into a more standardized framework, machine learning will continue to provide the banks and other financial institutions more opportunities to explore and exploit emerging applications, while being more efficient in delivering the existing services. While the emerging techniques discussed in the chapter will play their critical roles in mitigating future risks in models, they will also guide the authorities in designing effective regulations and compliance frameworks in risk-intensive applications like creditworthiness assessment, trade surveillance, and capital asset pricing. The model validation process will increasingly be adapted to mitigate machine learning risks, while considerable effort and time will be spent in fine-tuning the model hypermeters in handling emerging applications. However, banks will have more opportunities to deploy the models in a large gamut of applications, gaining competitive business advantages and mitigating risks in operations.
