As I stated in yesterday’s article several of the concerns identified by regulators have already been solved, such as making AI decisions transparent. Good development practices and existing bank regulations already require financial institutions to perform extensive risk assessment, ensure training data meets high standards, requires AI-generated (or human generated) decisions are traceable, and that detailed technical documentation and human oversight is provided.
As such additional regulations are unlikely to help. Instead of writing regulations specific to AI I wish existing consumer protection regulations were better enforced, that would protect consumers from both bad humans and bad AI:
“Some corporate technology leaders say a proposed clampdown by European regulators on the use of artificial intelligence will run up costs and stifle innovation, just as companies are starting to unlock its potential.
Others say stronger oversight will help build public trust in AI systems, which have inflamed tensions over data privacy, consumer protection and misuse—especially in areas like facial recognition.
Thomas Donnelly, chief information officer of software firm BetterCloud Inc., said the proposed restrictions will have a negative impact on Europe’s technology sector over the long term, as companies elsewhere gain a competitive edge by continuing to develop cheaper and more efficient AI-powered applications.”
Overview by Tim Sloane, VP, Payments Innovation at Mercator Advisory Group