In brief
A series of briefings that take a “bite-size” look at international trends in different jurisdictions, drawing on Baker McKenzie’s expert financial services practitioners with local market knowledge.
Over recent years, developing artificial intelligence (AI) and machine learning technology has seen gradual adoption within financial services, for example, in credit scoring, to automate assessments of creditworthiness. Other use cases such as robo-advice, have developed less quickly than expected. However, the emergence last year of generative AI capable of human-like text that can analyze vast amounts of data and create new content has caught the public’s imagination and turbocharged interest in potential use cases together with concern over the inherent risks. For our part, Baker McKenzie in “The Next Decade in Fintech” has explored with experts in the field how AI in financial services is likely to evolve in the years to come.
In this edition of Bite-size Briefings, we take a bite-size look at the latest developments concerning AI regulation as it affects financial services in Australia, the EU, Hong Kong SAR, Thailand, the UK and the US.
Key takeaways
- Currently, the EU is furthest along the road to developing specific AI legislation of general application and, given the size of its market, this may set the tone elsewhere, while other jurisdictions and their regulators are busy publishing principles and guidance.
- The mischief sought to be addressed is nonetheless the same including governance, lack of explainability, as well as the risk of bias and discrimination.
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Author
Paula De Biase
Paula De Biase heads the Fintech and Financial Services Regulation (FSR) Group in Spain, including also the Funds practice. She also sits in the Global FSR Steering Committee of the Firm and acts as co-lead of the FSR practice for the EMEA region.
With more than 15 years' experience in financial regulation, she has advised national and international clients in various areas of the financial services sector: payment services, fund management, investment services, consumer credit and other banking and insurance services, including Fintech initiatives and other online and mobile solutions.
Paula has taught Banking Law in the Master's programmes of several universities: the International Legal Consultancy degree at IE; the International Law, Foreign Trade and International Relations degree at ISDE; the Business Law degree at the Universidad de Navarra, and the Venture Capital and Entrepreneurship degree at INCARI/Rafael del Pino Foundation.
She is individually ranked in Chambers 2023 for FinTech and Financial Regulation. She is described in these publications as "an excellent lawyer: she is expert in all things FinTech, regulatory and payments. She has a deep understanding of financial regulation in Spain and has considerable experience dealing with regulatory authorities there. Her advice is always considered, comprehensive and most importantly practical and commercially focused."
Author
Benja Supannakul
Benja is a partner in the Bangkok office of Baker McKenzie. She joined Baker McKenzie in 2001 and is specialized in the areas of financial products including but not limited to derivatives, structured products, structured finance, wealth management, private banking, fund management and debt capital market, especially in regard to the regulatory matters. She has been also acting as a Thai legal counsel for ISDA Association and regularly advises international banks, capital markets intermediaries, fund managers, insurance companies and other financial institutions on financial services compliance and regulatory matters. She has been recognized by several of the world's leading legal directories.
