DIGITAL BANKING

The potential global impact of this legislation is significant , with Steve noting that “ while some markets like the UK are outside of the EU , the Brussels Effect is so strong that we should expect any local AI consumer regulations to be modelled on the act ”.

However , the industry must remain cautious about viewing AI as a panacea . Ivo Gueorguiev , Co-founder of Paynetics , warns : “ AI is not the ultimate saviour for consumers . It brings significant benefits , particularly in risk monitoring and certain aspects of detection , but we must remember that fraudsters also have access to these technologies .”

This dual-edged nature of AI underscores the need for stronger regulations on its use in the financial sector , ensuring businesses implement strict security measures .

The challenge lies in striking the right balance between innovation and protection . As Samar Pratt , Global Financial Crime Compliance Advisory Leader at Capgemini , emphasises :

“ There must be clearer guidelines on the use of AI , particularly concerning data protection and algorithmic transparency .

Additionally , there should be a stronger emphasis on educating customers about the risks associated with AI-driven services , enabling them to make informed decisions .

“ Collaboration between regulators , tech companies and financial institutions is essential to establish robust standards that can adapt to the rapidly evolving technology landscape .”

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