![]() ![]() Such requirements are difficult for AI/ ML-driven solutions to achieve and may effectively restrict the deployment of bots that can perform such roles within India and adversely affect developers of such applications. Yet, the digital-only nature of robo advisors has led to compliance challenges, such as the requirement of investment advisers and investors entering into a written agreement. The extension of the extant regulatory framework to AI/ ML technologies may hinder bots and other AI/ ML techniques from being deployed due to compliance requirements that are difficult to achieve.Īs an example, the Securities and Exchange Board of India (“ SEBI”) has not excluded the application of the Securities and Exchange Board of India (Investment Advisers) Regulations, 2013 (“ IA Regulations”) to robo advisors in the past. The emergence of bots that perform functions similar to intermediaries regulated by the Securities and Exchange Board of India (“ SEBI”) and the Reserve Bank of India (“ RBI”) potentially present regulatory and supervisory challenges. Bots undertake functions that are similar to regulated intermediaries, leading to supervisory and regulatory challenges for both regulators and the deployers of bots We focus on legal and regulatory risks in particular:ġ. Against this backdrop, familiar questions surrounding legal and regulatory considerations for financial service providers adopting AI and ML, arise. Financial institutions on their part have benefitted greatly through chat bots handling consumer interactions and grievances, identity verification (including video KYC), predictive analytics to mitigate and minimise frauds, etc.Īll this was before ChatGPT, which reached one million user sign-ups within five days of its release and has arguably introduced AI capabilities to the masses through a direct interface. Tangible use-cases in the financial sector have resultantly sprung, benefitting both customers and investors through robo advisors, portfolio optimisation, and algorithmic trading bots. ![]() There are estimates that AI technologies could potentially contribute towards US$ 1 trillion in additional value for the global banking sector, and a World Economic Forum survey indicated that seventy seven per cent of all respondents (151 fintechs and financial institutions from thirty three countries) anticipated AI to possess a high or a very high overall importance in their businesses in the near future. Financial institutions have invested heavily into artificial intelligence (“ AI”) and machine learning (“ ML”) techniques globally, and in India, over the past decade. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |