In this episode, Helen Chan, regulatory intelligence expert in Hong Kong is joined by Lindsey Rogerson and Rachel Wolcott, senior editors in the UK, to examine use cases for artificial intelligence (AI) powered regtech in culture and conduct risk management. They discuss the potential pitfalls of employee surveillance, endowment bias and instances where AI goes awry. Lindsey and Rachel highlight emerging enforcement risk from the United States' Securities and Exchange Commission (SEC) over AI-washing and the importance of tracking data lineage in the incorporation of generative AI tools for financial institutions.
Links:
The European Insurance and Occupational Pensions Authority - Report on the digitalisation of the European insurance sector: www.eiopa.europa.eu/publications/eiopas-report-digitalisation-european-insurance-sector_en
Regulators in Asia lay down foundation for regulation of AI ethics (paywall): http://go-ri.tr.com/aWnKkV
Conduct tech may fail to deliver insights, while increasing data privacy risk, ethical issues: http://go-ri.tr.com/PN8Rvm
SEC Charges Two Investment Advisers with Making False and Misleading Statements About Their Use of Artificial Intelligence: www.sec.gov/newsroom/press-releases/2024-36
SEC Charges Founder of AI Hiring Startup Joonko with Fraud: www.sec.gov/newsroom/press-releases/2024-70#:~:text=The%20Securities%20and%20Exchange%20Commission,Joonko's%20customers%2C%20the%20number%20of
Finos' AI Readiness: www.finos.org/press/finos-launches-ai-readiness
Contact us:
Helen.Chan@thomsonreuters.com; Lindsey.Rogerson@thomsonreuters.com; Rachel.Wolcott@thomsonreuters.com
For more information about Regulatory Intelligence please search for Thomson Reuters Regulatory Intelligence or click here: legal.thomsonreuters.com/en/products/regulatory-intelligence
Compliance Clarified is a podcast from Thomson Reuters Regulatory Intelligence.
Listen to wide-ranging, insightful discussions on all things compliance for financial services firms. We delve into the hot topics of the day, the challenges faced and offer up practical ideas for emerging good practice. We de-mystify regulation and explore the art, as well as the science, of the ever-expanding role of the compliance officer. Enforcements, digital transformation, regulatory change, governance, culture, conduct risk – anything and everything impacting the compliance function is up for discussion.
