AI News

On 5 December 2024, the Monetary Authority of Singapore published an information paper outlining good and ethical practices for Artificial Intelligence (AI) and Generative AI model risk management. The paper is based on the findings of thematic review conducted in mid-2024 that evaluated AI practices across selected banks. Through this paper, MAS discusses the importance of good governance, risk management systems, and development protocols for AI and Generative AI. The authority encouraged all financial institutions to adopt these practices to ensure responsible AI deployment and innovation. The information paper also elaborates on AI’s transformative potential in enhancing operational efficiency, customer engagement, and risk management. However, it also highlights the risks associated with its use, including financial, operational, regulatory, and reputational challenges. The review conducted in mid-2024 taken into account how banks are currently navigating these risks, with an...

On 5 December 2024, the United States Commodity Futures Trading Commission issued an advisory concerning the use of artificial intelligence in markets under its jurisdiction. The advisory, released by the Divisions of Clearing and Risk, Data, Market Oversight, and Market Participants, aims to guide registered entities and registrants in maintaining compliance with the United States Commodity Exchange Act and associated regulations while adopting artificial intelligence technologies. This advisory recognises the transformative potential of artificial intelligence in derivatives markets and highlights the responsibilities of regulated entities to integrate this technology without compromising their statutory and regulatory obligations. The advisory recognises the growing role of artificial intelligence in financial markets and the potential benefits and risks associated with its use. It draws on multiple sources, including public comments, industry engagements, and guidance from United...

On 27 November 2024, the Monetary Authority of Singapore published the Singapore’s 2024 Financial Stability Review, offering an incisive analysis of the challenges and opportunities in an increasingly uncertain global economic landscape. The document evaluates macrofinancial risks, corporate and household sector vulnerabilities, and the health of the financial sector, while also addressing emerging themes such as virtual assets, artificial intelligence (AI), and quantum technologies. The MAS FSR 2024 outlines the challenges posed by a volatile global macrofinancial environment. With geopolitical conflicts, trade tensions, and elevated debt levels across advanced and emerging economies, the probability of adverse financial shocks remains high. Key vulnerabilities include stretched asset valuations, fiscal imbalances, and the risk of sudden corrections in financial markets. While emerging markets in Asia are better positioned with stronger buffers, policymakers are cautioned to...

On 13 November 2024, Michael Debabrata Patra, Deputy Governor of the Reserve Bank of India, delivered an influential inaugural address at the DEPR Conference in Jaipur. His speech, titled "Digital Technology, Productivity, and Economic Growth in India," explored how digitalisation, artificial intelligence, and virtual digital currencies are shaping economies, improving productivity, and unlocking transformative growth opportunities for India and other emerging markets. Michael Debabrata Patra discussed the transformative role of artificial intelligence, robotics, and virtual digital currencies, equating their potential to historic technological revolutions like steam power and personal computing. Generative artificial intelligence alone is projected to contribute between seven and ten trillion US dollars to global GDP within the next three years. In India, digital technologies currently account for ten per cent of GDP and are expected to grow to twenty per cent by 2026. This puts...

On 8 November 2024, David Fairfull, former Chief Executive Officer of the artificial intelligence marketing company Metigy, appeared before the Downing Centre Local Court in Sydney, Australia, to answer allegations of misleading investors and abusing his position as a director for personal gain. The case, led by the Australian Securities and Investments Commission (ASIC), represents a landmark in the governance of artificial intelligence firms, where the need for transparency and ethical accountability has never been greater as AI continues to transform industries and attract substantial investment. 1041E(1) of the Australian Corporations Act 2001 and an additional charge of dishonestly using his directorial position for personal benefit, in violation of section 184(2) of the same Act. ASIC’s investigation alleges that between 2018 and 2021, while actively seeking investor funding, Mr Fairfull provided exaggerated revenue and income figures for Metigy, an AI-powered digital marketing...

On 3 November 2024, the Monetary Authority of Singapore (MAS) announced the ninth annual Singapore FinTech Festival (SFF), scheduled to take place from 6 to 8 November 2024. Organised by the Monetary Authority of Singapore in collaboration with the Global Finance & Technology Network and Constellar, this year’s event will place a special emphasis on artificial intelligence and quantum technology, underlining their growing importance in transforming the financial sector. The festival aims to serve as a collaborative platform where industry leaders, policymakers, and technology experts can come together to explore the possibilities these technologies offer, as well as their implications for areas such as decarbonisation, digital asset adoption, efficient cross-border payments, and financial inclusion. The festival’s main events will be preceded by the Insights Forum, an invitation-only event held on 4 and 5 November. This forum will feature the Layer One Summit, focused on...

On 10 October 2024, Gary Gensler, the Chair of the United States Securities and Exchange Commission (US SEC), delivered a statement regarding the risks of fraud and deception in the context of artificial intelligence and its application in finance. His remarks discussed the timeless nature of fraud under US securities law and how new tools, such as AI, present both opportunities and risks. Gensler focused on the evolving challenges AI poses for investor protection, with a specific emphasis on programmable, predictable, and unpredictable harm. Gensler began by referencing a key historical figure in computer science, Alan Turing, and his famous 1950 question, “Can machines think?” He used this reference to highlight the relevance of Turing’s question in today’s world of securities law, particularly regarding fraud and manipulation. Gensler discussed that although AI represents an advanced tool for today’s market participants, fraud remains fraud under US securities law, regardless of...

On 3 October 2024, the G7 Competition Authorities and Policymakers Summit met in Rome, Italy, to address the competitive challenges presented by the rapid advancement of artificial intelligence technologies, including Generative AI (GenAI). This gathering, hosted by the Italian Competition Authority, followed up on discussions initiated during the G7 Industry, Technology and Digital Ministerial Meeting in March 2024 and the Tokyo Summit in 2023. The discussions in Rome centered around ensuring that AI-driven innovations foster healthy competition while mitigating risks of market concentration and unfair practices. The US Justice Department’s Antitrust Division and the Federal Trade Commission participated in the summit. The communiqué discusses the transformative potential of AI for economies and societies along with its ability to increase productivity and spur innovation across multiple sectors. However, the communiqué also stresses that to fully reap the benefits of AI, it is...

On 12 September 2024, under the directives of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of the Higher Committee for Future Technology and Digital Economy, the Dubai AI & Web3 Festival successfully concluded, drawing over 6,800 attendees from more than 100 countries. The two-day festival, organized by the Dubai AI Campus in partnership with the Dubai International Financial Centre (DIFC) and the Minister of State for Artificial Intelligence, Digital Economy & Remote Work Applications Office, showcased the growing commercial potential of AI and Web3 technologies. The event basically discussed Dubai’s role as a global hub for future-focused industries, attracting government officials, heads of state, business leaders, and academics from around the world. More than 100 exhibitors showcased cutting-edge technologies. A key feature of the event was the announcement of the Dubai AI Licence and the introduction of AI as a...

On 16 August 2024, the Commonwealth Secretariat and Intel Corporation, in collaboration, launched StrategusAI, an innovative Artificial Intelligence (AI) toolkit designed to transform the way member governments develop and implement policies. This tool aims to help governments across the Commonwealth by addressing challenges and leveraging the opportunities that AI presents. StrategusAI represents a significant advancement in policy development, enabling governments to create data-driven, informed strategies that integrate global best practices while addressing local needs. The launch of StrategusAI solidifies the Commonwealth's commitment to closing the digital divide and fostering economic resilience among its member states. By equipping policymakers of member states with this cutting-edge technology, the Commonwealth Secretariat and Intel Corporation are ensuring that governments can effectively harness the power of AI to drive progress and innovation, making this an important...

On 15 July 2024, the U.S. Copyright Office released a Report titled "Copyright and Artificial Intelligence, Part 1: Digital Replicas." The Report explores the complex relationship between copyright law and the rapidly advancing capabilities of artificial intelligence (AI). Specifically, the report focuses on digital replicas, which are realistic digital reproductions of an individual's voice, appearance, or other personal attributes created using AI technologies. These replicas can be so lifelike that they are often indistinguishable from authentic content. While AI offers exciting opportunities for creative expression, the emergence of digital replicas has raised significant legal and ethical concerns, particularly regarding unauthorised use and the protection of personal identity. The report identifies several critical lacunas in the existing legal frameworks that fail to adequately address the challenges posed by digital replicas. Firstly, current copyright laws are fundamentally...

On 14 August, 2024, the Securities and Exchange Commission (SEC) Chairman Gary Gensler released a statement highlighting the growing influence of artificial intelligence (AI) in financial markets and the potential risks it poses to investors. With AI increasingly embedded in everyday digital experiences, from search algorithms to personalized marketing, the SEC's attention has turned to its application in the financial sector, particularly in investment platforms and brokerage services. The rise of AI has brought significant advancements in the ability to process vast amounts of data, recognize patterns, and make predictions. This technology allows companies to "narrowcast," tailoring messages, pricing, and products to individual consumers with unprecedented precision. In the financial sector, this manifests in the use of Robo-advisors and brokerage applications that rely on AI algorithms to provide personalized investment recommendations and alerts. However, as SEC Chairman Gary...