EXPERT FORECAST : BANKING AND FINANCE
David Salloum , Group Legal Director at Eastnets
doesn ’ t already exist , an AI governance body must be created . This needs to be accountable for all use of AI throughout the business and should carefully evaluate systems to determine their classification under the Act .
For example , AI systems used for credit scoring or creditworthiness evaluation will likely be classified as high-risk given their significant impact on individuals ’ access to financial resources . Conversely , the European Parliament proposes that AI systems deployed for detecting fraud in financial services should not be considered high-risk under the Act . This nuance allows FIs to continue innovating in fraud detection while ensuring compliance with the Act ’ s overarching principles .
Secondly , this group should assure human oversight of all systems to ensure AI is being used transparently ethically , fairly , securely and with privacy controls . For example , when the software interacts with humans , it must disclose that it is AI . Furthermore , AIgenerated content must be clearly labelled to avoid misrepresentation . Users must also be informed when AI uses emotion recognition or biometric categorisation .
Finally , any governance body should also ensure high quality of input data , to minimise biases and prevent discriminatory outcomes . It must also be 100 per cent transparent in its own work , recording its decisions and making these available when needed .
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