scholarly journals Legal regulation of artificial intelligence in the financial services market: a comparative analysis

2021 ◽  
Vol 118 ◽  
pp. 04007
Author(s):  
Olga Viktorovna Sushkova ◽  
Aleksey Vladimirovich Minbaleev
Keyword(s):  
Artificial Intelligence ◽  
Comparative Analysis ◽  
Financial Services ◽  
Legal Regulation ◽  
Privacy Rights ◽  
Dialectical Logic ◽  
Digital Platforms ◽  
Legal Norms ◽  
Ex Post ◽  
Artificial Intelligence Technology

The study aims to conduct a comparative analysis of the legal regulation of the use of artificial intelligence in the financial services market. The research was carried out based on empirical methods of comparison, description, interpretation, and theoretical methods of formal and dialectical logic. Particular scientific methods were used: legal-dogmatic and the method of interpreting legal norms. The financial services market is currently expanding access to finance. At the same time, the normative legal regulation of artificial intelligence technology (hereinafter referred to as AI) in the financial sector is rather fragmentary and declarative. The position is expressed that artificial intelligence in the financial services market can lead to systemic risks and the manipulation of such a market on trading platforms. It is argued that the development of artificial intelligence should adhere to regulatory goals related to market security, consumer protection, and market integrity. The authors highlight regulatory objectives and possible regulatory methods for peer-to-peer platforms that ensure equality and fair access to financial instruments. The results of the work were the justification for the need to use robotic consultants in the field of investment activities to provide consumers with access to financial services markets. It is shown that the current legal regime does not provide adequate protection for consumers of financial services in this regard. At the same time, the authors believe that artificial intelligence can be used as a form of RegTech (regulatory technology) to optimize compliance processes, thereby increasing competition in financial markets and benefiting consumers. However, such use may be contrary to the principles of confidentiality, data protection, and ethical considerations. The novelty of the work lies in the proposed basic guidelines for the development of detailed regulators for the certification of algorithms and digital platforms, for enhancing ex-ante and ex-post protection of individuals using robotic consultants, and for addressing the question of how individual rights such as privacy rights and data rights can be exercised.

Peculiarities of application of artificial intelligence in the financial services sector: EU experience

2020 ◽  
pp. 61-66
Author(s):  
K. Yefremova
Keyword(s):  
Artificial Intelligence ◽  
Financial Services ◽  
Financial Sector ◽  
Resource Planning ◽  
Legal Regulation ◽  
Fundamental Rights ◽  
Main Body ◽  
Strategic Issues ◽  
Codes Of Practice ◽  
Systemic Problems

Problem setting. Artificial intelligence is rapidly affecting the financial sector with countless potential benefits in terms of improving financial services and compliance. In the financial sector, artificial intelligence algorithms are already trusted to account for transactions, detect fraudulent schemes, assess customer creditworthiness, resource planning and reporting. But the introduction of such technologies entails new risks. Analysis of resent researches and publications. The following scientists were engaged in research of the specified question: D.W. Arner, J. Barberis, R.P. Buckley, Jon Truby, Rafael Brown, Andrew Dahdal, O. A. Baranov, O. V. Vinnyk, I. V. Yakovyuk, A. P. Voloshin, A. O. Shovkun, N.B. Patsuriia. Target of research. The aim of the article is to identify key strategic issues in developing mechanisms to ensure the effective implementation and use of artificial intelligence in the financial services market. Article’s main body. The paper investigates an important scientific and practical problem of legal regulation of artificial intelligence used by financial services market participants. The legal risks associated with the use of artificial intelligence programs in a particular area are considered. The most pressing risks to address targeted AI regulation are fundamental rights, data confidentiality, security and effective performance, and accountability. This article argues that the best way to encourage a sustainable future in AI innovation in the financial sector is to support a proactive regulatory approach prior to any financial harm occurring. This article argues that it would be optimal for policymakers to intervene early with targeted, proactive but balanced regulatory approaches to AI technology in the financial sector that are consistent with emerging internationally accepted principles on AI governance. Conclusions and prospects for the development. The adoption of rational regulations that encourage innovation whilst ensuring adherence to international principles will significantly reduce the likelihood that AI-related risks will develop into systemic problems. Leaving the financial sector only with voluntary codes of practice may encourage experimentation that in turn may result in innovative benefits – but it will definitely render customers vulnerable, institutions exposed and the entire financial system weakened.

scholarly journals Financial Intermediation and Technology

2020 ◽  
Vol 20 (161) ◽  
Author(s):  
Arnoud Boot ◽  
Peter Hoffmann ◽  
Luc Laeven ◽  
Lev Ratnovski
Keyword(s):  
Artificial Intelligence ◽  
Data Collection ◽  
Business Model ◽  
Financial Services ◽  
Financial Intermediation ◽  
Communication Channels ◽  
Policy Implications ◽  
Digital Platforms ◽  
Balance Sheets ◽  
Hard Information

We study the effects of technological change on financial intermediation, distinguishing between innovations in information (data collection and processing) and communication (relationships and distribution). Both follow historic trends towards an increased use of hard information and less in-person interaction, which are accelerating rapidly. We point to more recent innovations, such as the combination of data abundance and artificial intelligence, and the rise of digital platforms. We argue that in particular the rise of new communication channels can lead to the vertical and horizontal disintegration of the traditional bank business model. Specialized providers of financial services can chip away activities that do not rely on access to balance sheets, while platforms can interject themselves between banks and customers. We discuss limitations to these challenges, and the resulting policy implications.

scholarly journals ROBOTIC THEATRE: COMPARATIVE ANALYSIS OF HUMAN AND MECHANIZED ACTIVITIES IN THE CREATIVE PROCESS

2021 ◽  
Vol 14 (2) ◽  
pp. 295-306
Author(s):  
Tetiana Sovhyra
Keyword(s):  
Artificial Intelligence ◽  
Comparative Analysis ◽  
Creative Process ◽  
Human Interaction ◽  
Threat Perception ◽  
Uncanny Valley ◽  
Methodological Basis ◽  
Artificial Intelligence Technology ◽  
The Moment ◽  
Methods Analytical

The article systematizes and analyzes the existing experience of organizing the creative process in a robotic theater. The author explores the robotic theater phenomenon, the artificial intelligence technology possibilities to function in the stage space. The article provides a comparative analysis of human and mechanized interaction in the stage space. The methodological basis of the research is a combination of several methods: analytical – for accounting for historical and fictional literature; theoretical and conceptual method – for analyzing the conceptual and terminological system of research and identifying the specifics of introducing the artificial intelligence technology in creative process; comparative-typological – to compare the peculiarities of the functioning of mechanized “actors” with the acting skills of human performers. The article explores the threat perception and uncanny valley concepts to study the perception of a robot–actor by an audience. The author examines the process of human interaction with a robotic body: from the moment of interest, interaction to the moment of rejection of the robot by a person (audience).

scholarly journals Prospects for the development of legal regulation of the crypto currency market in Russia

E-Management ◽  
2020 ◽  
Vol 2 (4) ◽  
pp. 11-21 ◽  
Author(s):  
O. I. Larina
Keyword(s):  
Comparative Analysis ◽  
Legal Regulation ◽  
Regulation Mechanism ◽  
Financial Assets ◽  
Technological Changes ◽  
Legal Norms ◽  
Systemic Risks ◽  
Crypto Currency ◽  
Definition Of ◽  
Near Future

An accomplished fact is the development of the cryptocurrency market, including in Russia. At the same time, the Russian legal regulation mechanism has not yet been formed, and the existing draft law on the circulation of digital financial assets has not yet been agreed. Growing demand for cryptocurrencies from investors carries systemic risks, as well as threats of using digital financial assets for illegal purposes. In this regard, regulators in different countries are forced to take measures to legislate the circulation of such assets. At the same time, such measures can be quite different: from simply informing subjects about possible risks to the adoption of detailed laws establishing the rules for the circulation of such assets, the rights and obligations of subjects. At the same time, country approaches not only to regulation, but also to the definition of the essence of cryptocurrencies (money, assets, rights) differ greatly.The purpose of the article is to form recommendations on possible development of directions of Russian regulation of the cryptocurrency market. International approaches to the regulation of digital currencies, the practice and features of their application, as well as the proposed legal norms of the Russian bill on the use of digital financial assets in civil circulation have been analyzed in the article. As the research methodology, legal and comparative analysis of Russian and foreign practice has been used. Recommendations for making amendments to the current financial legislation and emerging digital legislation have been given. According to the author, the development of the cryptocurrency market in Russia in the near future will be influenced by the following facts: the adoption of digital legislation, international experience and practice of using cryptocurrencies, technological changes.

Using Platforms and Platform Law to Overcome Risks Caused by Digitalization Processes

2020 ◽  
Vol 26 (9) ◽  
pp. 969-974
Author(s):  
A. V. Altoukhov ◽  
S. Yu. Kashkin ◽  
M. V. Kuz’mina
Keyword(s):  
Public Relations ◽  
Information Technologies ◽  
Legal Regulation ◽  
Digital Platforms ◽  
Legal Norms ◽  
Technological Unit ◽  
Legal Risks ◽  
Analytical Work ◽  
Other Information ◽  
Legitimate Interests

Fundamental changes within a country and at the global level can have contradictory consequences for society. The more areas are affected by changes and the deeper these changes are, the more significant the necessary innovations can be. Considering the scale of digitalization and application of artificial intelligence technologies based on it, it can be concluded that we are dealing with an unprecedented phenomenon that needs to be thoroughly assessed by different experts.Aim. The presented study aims to assess risks associated with the implementation of platform solutions without appropriate legislative initiatives, which, in turn, should facilitate the creation of the platform law institution. Today, legal science assesses risks associated with the legislative regulation of processes and creates conditions for safe and productive interaction with new mechanisms.Tasks. The authors examine current legislation to create conditions for protecting the rights and legitimate interests of legal entities in their interaction with cutting-edge digital solutions and for analyzing the possibility of full-scale application of digital platforms on this basis; estimate the legal risks of applying digital innovations under current conditions.Results. Analytical work has shown that platform solutions are a new technological unit that cannot be fully regulated by existing legal norms due to its technological features. The lack of personalized legal regulation of platforms not only infringes the rights of citizens providing various public and other services using digital technologies, but also creates conditions for the aggravation of the crime situation and the development of new types of crime.Conclusions. The main risks of mass digitalization are considered. The technological features of innovations make it necessary to develop a branch of law that would regulate public relations during interaction with platform solutions and other information technologies. The authors propose a new complex mechanism of legal regulation — platform law, which will make using platforms completely safe and efficient in all sectors of society.

Theoretical approaches to artificial intelligence regulation in the EU: experience for Ukraine

2020 ◽  
pp. 80-85
Author(s):  
Kateryna Yefremova
Keyword(s):  
Artificial Intelligence ◽  
New Technology ◽  
Legal Regulation ◽  
Main Body ◽  
The European Union ◽  
Legal Norms ◽  
Strategic Issues ◽  
Goods And Services ◽  
Theoretical Approaches ◽  
The Eu

Problem setting. Legal regulation of the introduction and use of goods and services based on artificial intelligence technologies is covered by numerous areas of law, including rules on confidentiality, data security, responsibility for product quality, intellectual property and even antitrust law. These different areas of law are expected to gradually change in response to the special nature of artificial intelligence (AI). Because AI is a new technology, the legal regulation of which goes beyond the established institutions of law and approaches to the interpretation of legal norms. Analysis of resent researches and publications. The following scientists were engaged in research of the specified question: Matthew U. Schere, Allan Yeoman, Amy Ryburn, Philip Wood, Renee Stiles, Alex Chapman, Damien Steel- Baker and Keri Johansson, O. A. Baranov, O. M. Vinnyk, I. V. Yakovyuk, N.B. Patsuriia. Target of research. The aim of the article is to study European scientific approaches to identifying key strategic issues in the development of mechanisms for legal regulation of effective implementation and use of artificial intelligence. Article’s main body. The paper investigates scientific approaches to the limits of legal regulation of the introduction and use of artificial intelligence technologies. The history and practical steps on the way to the EU legal regulation on the introduction of artificial intelligence and related relations related to the use of these technologies are highlighted. The basic principles of development and use of artificial intelligence technologies are revealed, observance of which is obligatory. Conclusions and prospects for the development. The best approach to regulation should be based on risk assessment to ensure that responses to AI development are proportionate and not hamper the development of innovation as a whole. Instead of developing individual regulations at this stage, the European Commission has set out the legal requirements that any regulatory framework must meet to ensure that AI remains credible and respects the values and principles of the European Union.

ISSUES OF INFORMATIZATION OF THE PENITENTIARY SYSTEM

2021 ◽  
Vol 31 (3) ◽  
pp. 497-503
Author(s):  
V.V. Surin
Keyword(s):  
Comparative Analysis ◽  
Public Administration ◽  
Legal Regulation ◽  
Legal Aspects ◽  
Information Support ◽  
Legal Regulations ◽  
Prison Staff ◽  
Legal Norms ◽  
Criminal Penalties

The article is devoted to the issues of legal regulation of the activities of the penitentiary system, including the legal aspects of informatization of the penitentiary department. The author analyzes the retrospective of the development of legal norms regulating the processes of information support for the execution and serving of criminal sentences. The interrelationships of the development of legal regulation of the processes of informatization of public administration bodies, in general, and divisions of the Federal Penitentiary Service, in particular, are investigated. The paper presents a comparative analysis of a number of legal regulations that currently define various aspects of the information activities of prison staff, in particular, the goals, objectives and methods of implementing this area of activity. On the basis of the conducted research, proposals are formulated to optimize the processes of digitalization of institutions and bodies that execute criminal penalties, and the mechanism for implementing this activity.

scholarly journals Topical issues of legal regulation of artificial intelligence in the implementation of state and municipal service in the Russian Federation

2021 ◽  
Vol 27 (2) ◽  
pp. 160-163
Author(s):  
Ivan N. Melnikov ◽  
Ivan A. Samakov
Keyword(s):  
Artificial Intelligence ◽  
Russian Federation ◽  
Legal Regulation ◽  
Public Authorities ◽  
Municipal Service ◽  
The Public ◽  
Intelligence System ◽  
Artificial Intelligence Technology ◽  
The Russian Federation

This paper discusses the current issues of legal regulation in the field of artificial intelligence in the state and municipal service in the Russian Federation in order to ensure and protect the rights and freedoms of man and citizen. The article highlights the current problems that arise in the implementation of certain state functions, such as – the work of state bodies with citizens' appeals and the lack of regulatory regulation of the use of artificial intelligence technology in this process, the use of which will contribute to meeting the deadlines for working with citizens' appeals, as well as increase the overall level of quality of interaction between citizens and public authorities. Specific measures are proposed for the development of legislation in order to introduce artificial intelligence in solving the problems facing the public authorities. The article formulates the main conclusion regarding the trend of using the artificial intelligence system in the issue under consideration.

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