The European Commission aims to increase trust in AI based on the first legal framework.
The European Commission has drawn up the first ever regulatory proposal, aiming to provide AI developers, deployers and users with clear requirements and obligations regarding specific uses of AI.
The purpose of the new regulation is to ensure that the AI systems in use are safe, transparent, ethical, impartial and under human control. Hence, the systems are classified according to risk, based on whether they pose a clear threat to citizens' rights or safety, endanger critical functions, whether people can decide for themselves if they want to use them, or whether they are free to use applications such as spam filters using AI.
Banking industry is one of the most regulated industries, and any AI solution related to banking will be considered a "high risk" application from an AI regulatory perspective, which will set strict requirements on the trustworthiness and governance of the solutions.
Tietoevry, Aalto University and Turku University are initiating a co-research project which will help financial institutions using AI capabilities and products to be compliant with the upcoming EU regulation. AI capabilities and products include, for example, credit scoring services and other solutions that affect people's borrowing.
The aim of co-research project is to develop a governance framework and support technical capabilities for the AI solutions of the banking process, develop a systemic view and concrete guidelines for auditing and governing AI systems in banking and insurance, and evaluate the mathematical theories, algorithms and concepts on concrete use cases.
Tietoevry is coordinating the project, in addition to which it offers anonymized data and strong expertise in the banking industry to support the research. The aim is also to ensure that the company’s AI products like Sales Optimizer or Profit Scoring are in line with the future legislation. These AI powered solutions have been developed solely for banks, helping them to balance risk and maximize the overall profitability they receive from their lending business, whilst keeping the overall lending volumes at a desired level.
University of Turku develops solutions and tools for implementing responsible AI in practice, whereas Aalto University is responsible for the transparency, personalized explainability and integrity of the models.
We are inviting new growth companies to the project steering group. The partners will get visibility through project communications and can participate in project steering and decision-making. In addition, the companies can utilize the research results for the AI governance of their solutions. There is a good opportunity to develop a significant new export area for Finland in European regulatory technology, so contact me and I will tell you more.
Read more about the proposed AI Act (pdf 0,5 mb).
This project is part of the Business Finland funded Veturi ecosystem initiative Trusted Digital Societies which aims to develop affordable, accessible, and trusted digital services to citizens.
Read more about the Trusted Digital Societies programme.
Aleksandr leads whole Tietoevry Banking's software portfolio development of data and Al to transform it from "system of records" to "system of insights". He has worked in several international banks within risk management and business development, with a strong track record of business growth and intensifying corporate performance in Nordics, Baltics, and Poland.