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Davos, Switzerland, January 16 (Reuters) –
The CEO of London Stock Exchange Group, David Schwimmer, emphasized on Tuesday that the utilization of artificial intelligence in financial services necessitates measures to ensure the accuracy and dependability of data, but only after identifying the potential benefits of AI.
The European Union has provisionally endorsed the world’s first comprehensive regulations for AI, while the United States has also introduced an executive order. However, Britain has refrained from implementing bespoke regulations and suggested that a combination of existing rules can be currently applied.
Speaking at a panel at the World Economic Forum in Davos, Switzerland, Schwimmer stated, “It is crucial to establish regulatory controls regarding the utilization of AI, including the validation of data.”
He cautioned against erroneous forecasts resulting from AI-powered models due to questionable data.
“We must exercise caution in imposing regulatory constraints before understanding the potential,” Schwimmer emphasized.
Traditionally, the finance sector has employed AI, machine learning, and automated advice. However, Schwimmer highlighted the transformative potential of generative AI, with both industry participants and regulators striving to keep pace with advancements.
Schwimmer noted that exchanges and other entities within the financial sector are subject to extensive regulations. He remarked on the historical confrontational relationship between finance and regulators, suggesting that a collaborative approach would be more effective in adapting to rapidly evolving technology.
Charlotte Hogg, the CEO of Visa’s European operations, expressed concerns that hasty regulation of AI could impede innovation.
“I believe we should not impose onerous regulatory frameworks, but certainly involve regulation,” commented Hogg at the Davos panel.
(Reporting by Hugh Jones; Editing by Jason Neely and Lewis Havens)