Lack of clarity over AI definition ‘will confuse’ regulators
The lack of clarity over what technology is classed as artificial intelligence (AI) poses a major challenge to future regulation in the financial services industry, a new report has warned.
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Research by the International Regulatory Strategy Group (IRSG) found that the lack of a clear definition formed a barrier to further adoption of AI and could create confusion around how the sector should be regulated.
The report also warned that AI faced a challenge over its public perception, fuelled largely by negative discussions about the negative impact of the tech on employment and privacy.
While the IRSG dismissed concerns about automation-driven job losses, it warned of a shortage of tech talent needed to develop and implement AI technologies.
Overall, the report urged regulators to tread a careful balance to allow businesses to innovate while also retaining public trust.
“Despite fears of automation-driven unemployment, the rise of AI is creating new roles and opportunities across the industry as well as demonstrable consumer benefits,” said Mark Hoban, former Treasury minister and IRSG chair.
“The real challenge is how we can stay at the forefront of this new technological wave while maintaining the highest standards of regulation and public trust.”
Fernando Lucini, managing director at Accenture Digital, which co-authored the report, said: “Although the fundamentals of the UK’s regulatory architecture remain robust and fit for purpose for current applications of AI, further thinking on policy might be needed as the technology becomes more transformative and scaling it becomes a must.
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“With the best response likely centring on a combination of sharing industry best practices and leveraging existing regulatory frameworks.”
Main image credit: Getty