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The Green Sheet Online Edition

April 08, 2024 • Issue 24:04:01

Readers Speak: Balancing innovation and regulation

We wish to thank Ryta Zasiekina, founder of Concryt, concryt.io, for the following perspective on regulating tech innovations:

"Courts and regulators are dispelling the myth of tech exceptionalism, which suggests technology companies are somehow exempt from legal scrutiny," Zasiekina wrote. "Instead, they are enforcing existing legal frameworks more rigorously to address new challenges posed by technological innovation. This shift signals a move towards holding tech companies accountable within the established legal framework.

"The European Parliament's ratification of the AI Act marks a pivotal moment in many banking and financial services offerings, not least the ecommerce and cross-border payments industry, but it also raises important questions about the future of AI regulation. "While the legislation aims to set guardrails for AI technology, particularly in industries like banking and electronic products, there are concerns it may stifle innovation and hinder the development of cutting-edge AI solutions. By imposing strict regulations on AI systems, there's a risk that the European Union (EU) could fall behind in the global AI race, with countries like the United States and China leading the way in AI research and development. "Moreover, the AI Act's focus on safety and compliance with fundamental rights could inadvertently limit the potential of AI to revolutionize ecommerce and cross-border payments. AI-powered systems have the potential to enhance customer experiences, streamline operations and improve security, but these benefits may be curtailed by overly restrictive regulations.

"Despite these concerns, the AI Act does provide a much-needed framework for the ethical and responsible deployment of AI technology. It's essential that ecommerce and cross-border payments businesses prioritize transparency, accountability and fairness when implementing AI systems, and the legislation can help to ensure these principles are upheld.

"In the end, the impact of the AI Act on ecommerce and cross-border payments will depend on how it's implemented and enforced. It's crucial that policymakers strike the right balance between regulation and innovation, allowing businesses to harness the full potential of AI while safeguarding against potential risks".

Regulating tech

What are your thoughts on regulating big tech and AI, particularly for payments? Tell us at greensheet@greensheet.com. end of article

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