The European Parliament has finalised a provisional agreement on groundbreaking artificial intelligence regulations paving the way for the world's first legislation on AI, pending a vote by the legislative assembly in April. Known as the AI Act, these new regulations aim to establish boundaries for a technology widely used across various industries, including banking, automotive, electronics, aviation, as well as for security and law enforcement purposes.
David Mirfield, VP of Product Management at Provenir, a global leader in AI-powered risk decisioning software, comments:
"The EU's recent approval of the AI Act signifies a significant milestone in fostering the growth of Artificial Intelligence, which will undoubtedly trigger a new wave of investment in AI across the region. To stay competitive, organisations will be required to implement stricter governance and oversight measures. Just as GDPR revolutionised data security practices, the EU AI Act is poised to bring about a similar transformation in financial services, leading to a more customer-centric approach.”
"The greatest challenge for firms lies in sourcing skilled and cost-effective data scientists, a resource that is currently high in demand. Although off-the-shelf AI solutions like Chat-GPT may seem like an attractive shortcut, the real challenge lies in effectively deploying them in the long term. This requires expertise in understanding the technology's limitations and implementing safety measures to ensure its long-term success."
“The Act's central aim centres around establishing an "ecosystem of trust" and this emphasis is set to boost confidence in the widespread adoption of AI solutions across the region. While this transformation will not occur overnight, its legacy will undoubtedly reflect a significant increase in trust in AI technology.”
“While the current regulation is not comprehensive enough, it is, however, a step in the right direction. Typically, regulatory frameworks evolve over time, becoming more refined and adaptive. By observing how companies follow these rules, regulators will develop better oversight in future iterations”
