EXPERT FORECAST : BANKING AND FINANCE
Failure to meet the Act ’ s requirements could result in fines . The European Artificial Intelligence Board will oversee implementation , with national authorities responsible for supervision and enforcement . There will also be a public database for high-risk AI systems to ensure transparency and oversight .
Long term implications
General-purpose AI systems , like those used in image and speech recognition , will be addressed in future acts . The AI Act ’ s flexible framework allows it to evolve with AI technology , ensuring that new developments are adequately regulated .
FIs must stay informed about these changes , as they will affect how AI can be used for efficiency and innovation in areas like document processing , risk management and compliance .
Balancing innovation and regulation
While over-regulation can hinder innovation , the EU AI Act provides a sorely needed set of guiderails for a rapidly developing technology . On one hand , it aims to ensure AI systems are safe , protecting people ’ s rights . On the other , it ’ ll enhance innovation and investment thanks to the transparency and openness the Act demands . Developers will be better able to collaborate and improve the software .
However , the regulation must remain flexible and move at the same speed as the technology . Policy makers must consider feedback and collaborate with industry ; especially from sectors such as financial services where the rules have greatest impact . And while ethical considerations must always be at the heart of the regulation , this must be balanced with positive encouragement for the technology .
As the countdown to compliance begins , FIs should be positive . There ’ s undoubtedly work to do in terms of compliance , but the outcome will be a better for everyone : developers , businesses and consumers .
The information in this article is for general informational purposes only and does not constitute legal advice . The content is based on the author ’ s interpretation and may not reflect the most current legal developments . Readers should seek professional legal advice for specific concerns . All rights to referenced third-party content remain with their respective authors . � www . intelligentfin . tech
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