Science & Technology

British Banks Call for Caution on AI Regulation

Financial companies and technology firms warn UK regulators against applying harsh measures when forming the concept of activities to control the development and spread of artificial intelligence.

British Banks Call for Caution on AI Regulation

Those who believe that excessive rigor should be avoided in the mentioned case also stated that at present, it is not necessary to try to give a final and comprehensive definition of a technology in its infancy.

The Prudential Regulation Authority and Financial Conduct Authority have released information that, following discussions on the prospects and consequences of the development and spread of artificial intelligence with 54 companies and industry authorities, no consensus was reached on the potential benefits and risks of AI. The relevant data is contained in a document that was published on Thursday, October 26. Currently, there is no information about which companies the above discussion was held with.

Financial giants, including rating firm Moody’s Inc. and Wall Street bank JPMorgan Chase & Co., have already started conducting experiments using machine intelligence. Within the framework of these projects, the possibilities of advanced technology to reduce costs and accelerate work processes are being studied. Attention is also paid to the impact of artificial intelligence on the state of affairs in the labor market in the context of the emergence of new scenarios for the use of AI.

At the same time, some companies have told regulators that they would like to see the cooperation of international monitoring organizations in such fragmented spheres as data protection. Some firms adhere to the opinion that management in the artificial intelligence industry can be carried out based on those standards that are established by the already existing mode of work of senior managers.

There is currently no unified position in the public space regarding the risks of bias of judgments on the part of machine intelligence systems. Within the framework of the relevant discussion, the opinion was formed that advanced technology will not become a means of spreading unjustified assessments of a discriminatory nature, but a tool to prevent it. This position does not have universal approval, it is one of several points of view.

British regulators are currently directing their efforts to study what risks of using artificial intelligence threaten the financial system. Jessica Rusu, chief data, information, and intelligence officer at the Financial Conduct Authority, last Wednesday, October 25, told the Parliamentary Committee on Science, Innovation, and Technology that it is important not to focus specifically on AI, which has been developing for a long time. In her opinion, attention should be paid to comprehensive digital infrastructure, dependence on virtual clouds and large providers, cybersecurity, and other risk factors.

Prime Minister of the United Kingdom Rishi Sunak said on October 26 that world leaders should refrain from regulating machine intelligence until the moment when a final understanding of the essence of this technology is formed in their minds. He believes this approach is correct even taking into account the already existing risks associated with artificial intelligence.

The documents published by the Department for Science, Innovation, and Technology indicate that the influence of AI on the situation in labor markets and automation of the financial industry can become factors that undermine stability in the geopolitical space and the plane of social relations.

The European Union is currently exploring the prospects of a three-level approach to the regulation of models and systems of generative machine intelligence. In the USA, the developers of advanced technology have made voluntary commitments to ensure security.

As we have reported earlier, Joe Biden Administration Reportedly Prepares to Introduce Executive Order on AI.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.