This week saw the launch of The Kalifa Review of UK Fintech, an independent review of UK’s global fintech leadership. The review aims to recommend the next actions that are essential to ensuring the UK retains its leading position in global fintech. Its recommendations focus on Policy and Regulation; Skills; Investment; International; National connectivity. The large majority of this report is an accurate snapshot of reality. It makes considered and sound recommendations, and in many way it legitimises the Fintech as a sector in its own right. You can read here and here two useful analysis of this important review.
What is disappointing about this report is the apparent lack of depth in AI recommendations in financial services in respect of the business and governance side. The review talks about UK’ retaining its global Fintech leadership. I postulate that we cannot conceive Fintech leadership without AI leadership. In order to gain AI leadership, one needs to have basic AI competence.
Here are three immediate thoughts upon finishing reading the review: Firstly, it would be beneficial to stop incorrectly using AI and machine learning in the same sentence as we found on page 27 of the report: “The use of AI and machine learning models by financial services and fintech […]”. Secondly, AI technologies applications appear to be misunderstood. Finally, while the report talks about “the extent of the human oversight or intervention” it fails to point to the core of AI governance and regulations: regulations should focus on regulating humans who build and maintain these systems. This is the genesis of AI accountability, and failing to correctly identify it we run the risk of deflecting accountability. Source
The UK Fintech Review Link
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