Agentic AI for XVAs still five years away, experts say
Risk Live: Questions about validation and accountability keep autonomous AI models out of XVAs for now.
Agentic AI promises to transform the calculation of derivatives valuation adjustments (XVAs). But questions about model validation, accountability and regulatory readiness mean practitioners could wait up to five years to see the technology in full use, experts say.
XVA pricing adjustments capture the cost of counterparty credit risk, funding and capital for derivatives portfolios, and are among the most computationally demanding calculations that banks run.
Marcus Cree, a risk specialist at FIS
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