Banking on AI: mandating a proactive approach to AI regulation in the financial sector

<p dir="ltr">Despite an emerging international consensus on principles of AI governance, lawmakers have so far failed to translate those principles into regulations in the financial sector. Perhaps, in order to remain competitive in the global race for AI supremacy without being type...

وصف كامل

محفوظ في:
التفاصيل البيبلوغرافية
المؤلف الرئيسي: Jon Truby (14153022) (author)
مؤلفون آخرون: Rafael Brown (18891736) (author), Andrew Dahdal (17128879) (author)
منشور في: 2020
الموضوعات:
الوسوم: إضافة وسم
لا توجد وسوم, كن أول من يضع وسما على هذه التسجيلة!
_version_ 1864513512284356608
author Jon Truby (14153022)
author2 Rafael Brown (18891736)
Andrew Dahdal (17128879)
author2_role author
author
author_facet Jon Truby (14153022)
Rafael Brown (18891736)
Andrew Dahdal (17128879)
author_role author
dc.creator.none.fl_str_mv Jon Truby (14153022)
Rafael Brown (18891736)
Andrew Dahdal (17128879)
dc.date.none.fl_str_mv 2020-05-15T06:00:00Z
dc.identifier.none.fl_str_mv 10.1080/17521440.2020.1760454
dc.relation.none.fl_str_mv https://figshare.com/articles/journal_contribution/Banking_on_AI_mandating_a_proactive_approach_to_AI_regulation_in_the_financial_sector/26114521
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Commerce, management, tourism and services
Banking, finance and investment
Information and computing sciences
Artificial intelligence
Cybersecurity and privacy
Financial Technology (FinTech)
Machine Learning
Financial Regulation
Risk Management
Fraud Detection
Anti-Money Laundering
Innovation in Financial Services
dc.title.none.fl_str_mv Banking on AI: mandating a proactive approach to AI regulation in the financial sector
dc.type.none.fl_str_mv Text
Journal contribution
info:eu-repo/semantics/publishedVersion
text
contribution to journal
description <p dir="ltr">Despite an emerging international consensus on principles of AI governance, lawmakers have so far failed to translate those principles into regulations in the financial sector. Perhaps, in order to remain competitive in the global race for AI supremacy without being typecast as stifling innovation, typically cautious financial regulators are unusually allowing the introduction of experimental AI technology into the financial sector, with few controls on the unprecedented risks to consumers and financial stability. Once an unregulated AI software causes serious economic harm, a public and regulatory backlash would lead to over-regulation that could harm innovation of this potentially beneficial technology. Artificial intelligence is rapidly influencing the financial sector with innumerable potential benefits, such as enhancing financial services and improving regulatory compliance. This article argues that the best way to encourage a sustainable future in AI innovation in the financial sector is to support a proactive regulatory approach prior to any financial harm occurring. This proactive approach should implement rational regulations that embody jurisdiction-specific rules in line with carefully construed international principles.</p><h2>Other Information</h2><p dir="ltr">Published in: Law and Financial Markets Review<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1080/17521440.2020.1760454" target="_blank">https://dx.doi.org/10.1080/17521440.2020.1760454</a></p>
eu_rights_str_mv openAccess
id Manara2_688f5c45549fcd5bcf7cad6bc865aab8
identifier_str_mv 10.1080/17521440.2020.1760454
network_acronym_str Manara2
network_name_str Manara2
oai_identifier_str oai:figshare.com:article/26114521
publishDate 2020
repository.mail.fl_str_mv
repository.name.fl_str_mv
repository_id_str
rights_invalid_str_mv CC BY 4.0
spelling Banking on AI: mandating a proactive approach to AI regulation in the financial sectorJon Truby (14153022)Rafael Brown (18891736)Andrew Dahdal (17128879)Commerce, management, tourism and servicesBanking, finance and investmentInformation and computing sciencesArtificial intelligenceCybersecurity and privacyFinancial Technology (FinTech)Machine LearningFinancial RegulationRisk ManagementFraud DetectionAnti-Money LaunderingInnovation in Financial Services<p dir="ltr">Despite an emerging international consensus on principles of AI governance, lawmakers have so far failed to translate those principles into regulations in the financial sector. Perhaps, in order to remain competitive in the global race for AI supremacy without being typecast as stifling innovation, typically cautious financial regulators are unusually allowing the introduction of experimental AI technology into the financial sector, with few controls on the unprecedented risks to consumers and financial stability. Once an unregulated AI software causes serious economic harm, a public and regulatory backlash would lead to over-regulation that could harm innovation of this potentially beneficial technology. Artificial intelligence is rapidly influencing the financial sector with innumerable potential benefits, such as enhancing financial services and improving regulatory compliance. This article argues that the best way to encourage a sustainable future in AI innovation in the financial sector is to support a proactive regulatory approach prior to any financial harm occurring. This proactive approach should implement rational regulations that embody jurisdiction-specific rules in line with carefully construed international principles.</p><h2>Other Information</h2><p dir="ltr">Published in: Law and Financial Markets Review<br>License: <a href="http://creativecommons.org/licenses/by/4.0/" target="_blank">http://creativecommons.org/licenses/by/4.0/</a><br>See article on publisher's website: <a href="https://dx.doi.org/10.1080/17521440.2020.1760454" target="_blank">https://dx.doi.org/10.1080/17521440.2020.1760454</a></p>2020-05-15T06:00:00ZTextJournal contributioninfo:eu-repo/semantics/publishedVersiontextcontribution to journal10.1080/17521440.2020.1760454https://figshare.com/articles/journal_contribution/Banking_on_AI_mandating_a_proactive_approach_to_AI_regulation_in_the_financial_sector/26114521CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/261145212020-05-15T06:00:00Z
spellingShingle Banking on AI: mandating a proactive approach to AI regulation in the financial sector
Jon Truby (14153022)
Commerce, management, tourism and services
Banking, finance and investment
Information and computing sciences
Artificial intelligence
Cybersecurity and privacy
Financial Technology (FinTech)
Machine Learning
Financial Regulation
Risk Management
Fraud Detection
Anti-Money Laundering
Innovation in Financial Services
status_str publishedVersion
title Banking on AI: mandating a proactive approach to AI regulation in the financial sector
title_full Banking on AI: mandating a proactive approach to AI regulation in the financial sector
title_fullStr Banking on AI: mandating a proactive approach to AI regulation in the financial sector
title_full_unstemmed Banking on AI: mandating a proactive approach to AI regulation in the financial sector
title_short Banking on AI: mandating a proactive approach to AI regulation in the financial sector
title_sort Banking on AI: mandating a proactive approach to AI regulation in the financial sector
topic Commerce, management, tourism and services
Banking, finance and investment
Information and computing sciences
Artificial intelligence
Cybersecurity and privacy
Financial Technology (FinTech)
Machine Learning
Financial Regulation
Risk Management
Fraud Detection
Anti-Money Laundering
Innovation in Financial Services