head of british financial regulator announced plans To find out how big technology is corporate Access to extensive data could lead to improved financial products, etc. Options for consumers.
Regulatory changes may be due to artificial intelligence (AI) The potential for innovation, competitive pricing and expanded options for consumers and businesses. The move underscores a global trend toward considering and potentially leveraging technology. corporate Power up with new regulations.
“handHis announcement is interesting in that the UK appears to be taking a different approach to innovation than the EU.” gal ringelCo-founder and CEO of mytold PYMNTS, a global data privacy management company. “The EU, which just passed its AI law, regularly does its best to regulate technology before it hits the market.England take the approach of Working with Big Tech to leverage data insights and build better products will further increase trust in business and free markets.”
he added, “ah,Neither approach is better than the other, as the EU has prioritized end-user safety and privacy, while traditional countries like the US have prioritized the end product, but the UK is far removed from the EU. What is starting to diverge is something that AI should pay attention to.space becomes hot”
A call to action on data
meanwhile presentation at Digital Regulatory Cooperation Forum event led by Nikhil Rati british The chairman of the forum at the Financial Conduct Authority (FCA) outlined his main concerns about big technology companies. Mr. Rati said if F.C.A. According to the analysis, the technology corporate Data could benefit financial services, leading to more data sharing between technology and finance company
“handFurther consolidation of the control and power of a small number of companies will jeopardize competition and innovation.” lati said in a speech. “And, alongside promoting effective competition, the FCA's primary objective is to protect consumers from harm.”
FCA also feedback statement Regarding the Request for Comments on Data Sharing Practices between Big Tech and Financial Services Companies.On the other hand, big tech companies have access to By providing financial data through open banking, there is no obligation to reciprocate by sharing data with the financial sector.
Ringel said the larger the dataset, the more insights can be extracted from it and the more reliable the baseline that can be built for AI and other products.
“handEspecially when combined with data collection and scraping practices that do not compromise user privacy or safety, the benefits can drive innovation that leads to faster and more intuitive technologies in the consumer market.” he added.
Growing calls for regulation
The UK regulator’s decision to reconsider its approach to AI and data use in Big Tech reflects a broader global trend evident in several recent regulatory actions. For example, the EU passed the following legislation: A comprehensive AI law.
In the United States, Enhanced monitoring The Biden administration has advocated stricter enforcement of antitrust laws, especially with regard to major corporations. engineer Data practices. The Chinese government is Enforce strict data protection laws And it has cracked down on the expansion of previously unregulated technology companies like Alibaba and Tencent.
As PYMNT previously reportedthe UK clearly ““Promoting innovation” Its stance on AI regulation differs from its EU counterpart, which unanimously agreed to the final document. EU AI law.of The AI Act adopts a risk-based framework to regulate AI applications.one time that teeth enactedwhich affects all AI companies serving the EU market and users of AI systems within the EU, but does not apply to EU-based providers serving outside the EU.
In contrast, the UK government favors an alternative regulatory framework that differentiates AI systems based on their capabilities and risk outcomes, rather than just risk.According to the UK government The February response to the AI regulation consultation plans to introduce sector-specific regulations based on five core principles of AI, rather than enacting specific AI legislation. This approach aims to foster innovation by aligning regulations with different regulations. of the sector Specific needs and risks.
Benoît Koenigco-founder of VishionThe company, which develops AI-powered gesture recognition software, told PYMNTS that the EU AI Act is needed to build trust in AI technology.
“FCompanies operating within the EU will need to place greater emphasis on compliance, particularly for AI applications deemed to be high-risk, which may include areas such as surveillance and biometrics. there is.” he added. “This can increase operational costs and require more rigorous testing and documentation processes.”
US companies or EU customers operating in the EU will need to adapt their AI strategies to comply with upcoming AI lawssaid Koenig..
“IIt could also be a precursor to similar regulations in the United States, encouraging companies to proactively adopt stricter ethical standards for the development and use of AI.” he added.
“Overall, while this law presents certain challenges, it will encourage companies to lead the way in the ethical use of AI and foster innovation that is not only technologically advanced, but also socially responsible and trusted by the public. We also offer the opportunity to”
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