The article discusses the risks associated with AI deregulation in the U.S., particularly under President Trump’s administration, which may leave financial institutions vulnerable to unchecked algorithms. It highlights the need for robust regulatory frameworks to balance innovation and economic stability, especially in the wake of past financial crises.
The EU Artificial Intelligence Act, set to take effect in February 2025, mandates compliance from all AI system providers within the EU, focusing on user safety and human rights. Financial companies must be particularly vigilant regarding the risks associated with AI systems, ensuring they align with regulatory standards to avoid significant penalties.
The document discusses the risks and benefits of generative AI in the financial sector, highlighting the lack of specific legislation in Switzerland while outlining existing regulatory frameworks. It emphasizes the importance of governance, robustness, transparency, and non-discrimination in the deployment of AI technologies within financial institutions.