AI, AI, and more AI

As we are wrapping up our summer break, this week's FinTech Prose will continue to look at AI across the globe, with a dose of sustainability and doing good.

[1] On regulations: EU AI Act and UK AI Bill

Four years after the EU AI Act was initially proposed, it finally goes into effect August 1. As the CNBC article pointed out, since the legislation applies a risk-based approach to regulating AI, different applications of the technology are regulated differently depending on the level of risk they pose to society.

And it will have implications far beyond the EU.

Loan decisioning systems and remote biometric ID systems are two of the "high risks" examples that will be subject to more obligations.

Meanwhile, we should also be expecting an AI bill from the UK later this year, focusing exclusively on two things: "making existing voluntary agreements between companies and the government legally binding, and turning the UK’s new AI Safety Institute into an arm’s length government body, according to people briefed on the discussions."

More to come ...

[2] On government investment in AI: Brazil

Brazil's government recently unveiled a R$ 23 billion (about US $4.5 billion) proposal for an AI investment plan aimed at reducing tech dependency on international tech giants. The initiative also includes specific goals such as developing Portuguese-language AI models reflecting Brazil’s cultural and linguistic heritage.

The investment in AI reflects a global trend observed elsewhere, including the U.S., Canada, China, India, and Israel.

Developing AI systems is not cheap. As costs continue to escalate, will we end up in a situation where only those who can afford to play the game will remain in the race?

Haven't we seen that before ...?

[3] On partner vs competitor

And speaking of giants ... what about OpenAI and Microsoft? Is this move a regulatory play or a hint of what to come?

What else I am reading

[4] On sustainability and banking

The topic of 'sustainability' (or climate in general) has been a sensitive topic of sort in some circles in the U.S. Which is why, I appreciate this BankThink article in the American Banker even more.

"Banks can also use their climate risk insights to develop new products and services that help customers with their decarbonization transition ...

For example, a bank could partner with retailers to offer its customers access to a digital marketplace of energy-efficient home appliances and energy systems, such as high-efficiency water heaters or solar panels, along with a guide to related incentives and tax credits. Or a bank could develop a sustainable credit card that shows customers the carbon footprints of the products they buy and tracks their own carbon footprint, to help shape more carbon-conscious behavior."

Cue, Cogo

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In this week's One Vision ...

In this episode of One Vision, I chat with Alice Korngold , C-Suite and board advisor, speaker, and published author, on the value of collaboration between companies and nonprofits in finding innovative solutions to social challenges.

Purpose and profits do and should co-exist; when we work together, we thrive — together. From hiring intentionally and creating inclusive social cohorts, to developing responsibly and ethically, let’s commit to staying motivated and changing the status quo for a better and brighter future. Take actions and make meaningful contributions to positive progress, not just for our sake, but for the sake of future generations.

As Alice said, we each find our own path. And there is tremendous opportunity for every sector and every job to advance the world towards a more sustainable and inclusive path. Keep asking ‘why?’ and ‘what can I do?”.

Don’t forget to check out Alice’s latest edition of A Better World, Inc.

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During my recent trip to Hong Kong, I had the opportunity to catch up with the one and only Syed Musheer Ahmed on his show, Finstep Asia Edge, where we talked about everything from fintech, AI, innovation, and more.

Catch our conversation here!

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