TECH TALK X
How to Regulate AI? Lessons from the Financial Sector

In light of rapid advancements in artificial intelligence (AI), efforts in risk management and regulation are intensifying globally – from the EU AI Act to self-regulation strategies in the US and the generative AI regulations in China. The emergence of Large Language Models last year ignited significant concerns about AI’s potential risks, pushing the issue to the forefront of the public agenda. Issues such as misinformation, large-scale illegal online activities, political interference and safety risks associated with AI are driving the push for regulation. Nations are developing their own regulatory frameworks, which might lead to increased fragmentation in the global digital market. However, we don’t need to reinvent the wheel. We can draw lessons from other sectors, like the financial industry, where technology, in the form of complex, data-driven products, has introduced significant risks. The financial sector offers valuable insights on managing potential systemic risks arising from data and technology-driven products. Join Elizabeth McCaul (Supervisory Board, European Central Bank), Francois Candelon (Global Director Henderson Institute, BCG), Theos Evgeniou (Professor of Decision Sciences & Technology Management, INSEAD) and Ludo Van der Heyden (Chaired Professor Emeritus of Corporate Governance, INSEAD) in a discussion for insightful perspectives on the question of AI-regulation.

Further reading

• Managing Systemic Risks in Tech: Lessons from Finance, INSEAD Knowledge, 29 August 2023
• Further INSEAD Knowledge articles on AI can be found here.