Kicking off Finextra’s inaugural NextGen AI conference at Convene Sancroft in London, Lord Chris Holmes from the UK House of Lords delivered a keynote titled “AI in 2024: At the Edge.”
Lord Holmes emphasized the importance of managing AI innovation and ensuring that legislation supports AI development in the UK, particularly in the realm of financial services governance. He stated, “In financial services, or any sector, our best opportunity for optimal outcomes lies in weaving together inclusion and innovation.”
He addressed the social, democratic, and economic challenges posed by AI, noting its transformative potential alongside its risks, such as misinformation during elections, deepfake scams, and biases in AI models. To tackle these issues, he introduced his proposed AI Bill, aimed at fostering trust, transparency, accountability, accessibility, international collaboration, innovation, and inclusion in AI legislation. “We needed to legislate for both the opportunities and challenges of artificial intelligence,” he articulated.
Holmes outlined three key components of the bill:
1. Establishing a small, agile AI authority to assist larger regulators in identifying AI bias.
2. Mandating an AI officer in organizations to oversee the ethical deployment of AI.
3. Ensuring effective public engagement, as building trust is crucial for maximizing the benefits of AI technology.
He further suggested that a human-centered approach to AI could democratize financial services, balancing the interests of consumers and providers. He concluded by stating that successful businesses will be those that understand their objectives and explore how AI can support their goals, rather than forcing AI into their existing frameworks.
In the next session, James Wong, a lawyer at Clifford Chance, presented a keynote titled “Where are we now with AI?” He provided a brief history of AI technology, tracing its evolution from the First Industrial Revolution to what is now recognized as the Fourth Industrial Revolution. Wong discussed how AI emerged as a subset of the digital revolution, facing challenges before the resurgence of machine learning in the 1990s ignited a new AI boom.
“With the advent of deep learning, neural networks, and generative AI, we now see AI integrated into many aspects of daily life,” Wong noted, highlighting that AI has matured over decades and is no longer a novel technology. He acknowledged the dual nature of new technologies, which bring both opportunities and challenges. “While financial institutions can leverage AI gains, new technologies can also create new risks,” he warned, citing public concerns over job displacement and AI’s influence in creative sectors.
Wong stressed the need to recognize the disruptive nature of change, asserting that today’s technological adoption must be approached thoughtfully to avoid widespread negative repercussions. He also outlined four unique aspects of AI that distinguish it from past disruptive technologies:
1. Creative capability, enabling unprecedented advancements in areas like medicine and research.
2. Versatility, with AI applicable across a wider range of domains than previous technologies.
3. Speed and scale, allowing for rapid analysis and synthesis of vast datasets.
4. Adaptability, as AI improves with usage.
Wong characterized these factors as instrumental in establishing AI as the cornerstone technology of the Fourth Industrial Revolution.
He pointed out two key perspectives in addressing AI risks: “AI safety,” which considers systemic dangers, and “AI ethics,” which addresses more immediate issues like fairness, privacy, and accountability. Navigating both perspectives is crucial for effective AI governance.
Finally, Wong referenced the ‘Code is Law’ principle proposed by legal scholar Lawrence Lessig in the 1990s, asserting its relevance today in reflecting how digital systems increasingly shape our lives and behaviors. “The ‘Code is Law’ concept provides a valuable framework for understanding the integration of technology and its influence on human interaction,” he concluded.