DAVOS, Switzerland - Guard rails are needed for using artificial intelligence in financial services to ensure data is accurate and reliable, but only after the opportunities from AI have been identified, London Stock Exchange Group CEO David Schwimmer said on Tuesday.

"It's important to have some regulatory guard rails around the use of AI, including verifiability of data," Schwimmer told a panel at the World Economic Forum in Davos, Switzerland.

It is important to avoid "hallucinations" or incorrect predictions from AI-driven models due to questionable data, he said.

"You have to be careful about putting regulatory restrictions in place before we have figured out what the opportunity is," Schwimmer said.

  - Reuters