💣How can regulated businesses use AI and innovate considering the EU AI Act?

The latest AI Act regulation in EU makes it very difficult for #Banking #FinancialServices #Insurance #bfsi to use the #AI. In the BFSI, traditionally, there are many use cases in which AI is used, such as fraud detection, credit scoring, risk management, customer service, and so on. The new AI regulation will have a significant impact on how AI systems are developed, deployed and managed.

🚩The AI Act classifies AI systems into a set of risk categories (unacceptable risk, high risk, limited risk, and minimal risk), and any system must meet the strict requirements.

Is AI dead for EU?

In fact, quite the opposite. It makes it more relevant to use the right AI techniques for the problem and avoid using data for automation.

💡Decision Model and Notation (DMN) with Conformance Level 3 (CL3) is a viable option for organizations operating in regulated environments to take advantage of AI while remaining compliant with regulatory needs.

1️⃣ Transparency, audibility and explainability — Because of the nature of DMN as an open standard for modeling and execution of decisions, it is the best option for financial organizations to comply with the EU's regulatory requirements. The DMN enables organizations to create transparent models that clearly explain how decisions are made. Additionally, hence the DMN CL3 is a fully executable decision model with audibility and explainability; the DMN can act as a bridge between complex AI systems and regulatory requirements for explainability.

2️⃣ Fairness and non-discrimination — Maintaining compliance with EU regulations requires another important aspect. The fairness and avoiding discriminatory outcomes in providing services. In the BFSI use cases such as #CreditDecision #Pricing and many other areas, using #data to automate these processes is widely popular. Using data for automation makes it impossible to comply with the requirements for bias, fairness, and non-discrimination of the AI Act. However, with the DMN, organizations can still automate those areas while ensuring they will comply with the AU regulation for AI systems.

🚀To learn more about Decision Model and Notation, visit https://lnkd.in/gN6JTn-q

#EUAIAct #EU #airegulation

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Published September 24th, 2024 at 07:30 am