A report on artificial intelligence regulatory challenges in financial services
The inexorable rise of Artificial Intelligence technology and advanced data analytics across the financial sector is creating rapidly evolving regulatory and compliance challenges.
KPMG’s new report, AI Compliance in Control, examines the pressures institutions face and what action needs to be taken in an era when public policies regarding AI are developing more slowly than the technology.
With the proliferation of digital data for AI applications, the paper suggests establishing governance for data and algorithms amid heightened public awareness of data privacy and influence. Data used for system learning should be stored securely, with procedures in place to demonstrate compliance.
Along with other global fintech hubs, Hong Kong is looking to develop policies and regulations to promote the ethical and transparent adoption of the fast developing technology.
In particular, in May 2019 the Hong Kong Monetary Authority released a circular urging Authorised Institutions to adopt the “Ethical Accountability Framework” by the Privacy Commissioner for Personal Data (PCPD) regarding the collection and use of personal data.
In common with its peers in Europe and the United States, Hong Kong must grapple with a host of regulatory and ethical challenges.
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