Monday, 15/07/2024 | 15:59 GMT by Pedro Ferreira
- High-risk AI systems require EU database registration.
- EU AI Act demands clear communication on AI use.
The European Union has made a historic stride with the AI Act, establishing the world’s first comprehensive framework to regulate artificial intelligence. This landmark legislation, approved by the EU Council in May 2024, seeks to harmonize AI rules across the EU, ensuring that AI technologies are safe, transparent, and aligned with fundamental human rights. And while the Act addresses broad aspects of AI use, its impact on the payments industry is particularly profound.
What Are the Key Changes for Payment Providers?
The AI Act categorizes AI systems based on their potential risks, imposing strict requirements on high-risk applications. For payment providers, this means that AI tools used for fraud detection, credit scoring, and transaction monitoring must meet rigorous standards. These systems must undergo thorough testing and validation to ensure they operate safely and transparently. By mandating these checks, the Act aims to prevent AI-driven errors and abuses in financial services, safeguarding consumers and enhancing trust in digital payment systems.
A Risk-Based Framework
At the heart of the AI Act is a risk-based classification system, which assigns AI systems to different categories based on their potential to cause harm. This nuanced approach ensures that the level of regulatory scrutiny is proportional to the risk posed by the AI system. High-risk AI applications, such as those used in critical infrastructure, healthcare, and law enforcement, face stringent requirements. These systems must undergo rigorous testing and validation processes before they can be deployed in the EU market. This framework aims to mitigate the potential dangers of AI while allowing lower-risk technologies to flourish with minimal regulatory interference.
How Does the Act Enhance Transparency in Payment Systems?
Transparency is a cornerstone of the AI Act, requiring high-risk AI systems to be registered in an EU database. For payment providers, this means disclosing detailed information about the AI systems used, including their functionalities and potential impacts. This transparency is crucial in building trust with consumers, who can now understand how their data is processed and protected. Additionally, companies must inform users when AI systems are analyzing their transactions or personal data, ensuring that consumers are aware and can consent to such practices. These measures are designed to foster trust in AI technologies by ensuring that their deployment is open and accountable.
What Are the Compliance and Enforcement Mechanisms?
To ensure compliance, the AI Act establishes a robust governance framework. Payment providers must adhere to strict regulatory standards and are subject to significant penalties for non-compliance. These penalties can be a percentage of the company’s global annual turnover, emphasizing the importance of adhering to the regulations. The Act also introduces an AI Office within the European Commission, a scientific panel of experts, and an AI Board to oversee and enforce the rules. This multi-layered approach ensures that AI systems in the payments industry are consistently monitored and regulated.
What Are the Broader Implications for the Payments Industry?
The introduction of the AI Act is likely to have far-reaching implications for the payments industry. By setting high standards for safety, transparency, and accountability, the Act not only protects consumers but also encourages the development of trustworthy AI systems. Payment providers that comply with these regulations are likely to gain a competitive edge, as they can assure customers of the safety and reliability of their services. Moreover, the EU’s leadership in AI regulation could influence global standards, prompting other regions to adopt similar frameworks and ensuring a harmonized approach to AI governance in the payments industry.
Conclusion
As the AI Act comes into force, its impact will extend beyond Europe, influencing global standards and practices in AI governance. This landmark regulation sets a precedent for how societies can harness the potential of AI while safeguarding human rights and ethical values.
By imposing stringent requirements on high-risk AI systems, enhancing transparency, and promoting innovation, the Act aims to create a secure and trustworthy digital economy. Payment providers must navigate these new regulations carefully, but those that succeed will be well-positioned to lead in an increasingly AI-driven market.
As the Act comes into force, its impact on the payments industry will be closely monitored, setting a precedent for future AI governance worldwide.
The European Union has made a historic stride with the AI Act, establishing the world’s first comprehensive framework to regulate artificial intelligence. This landmark legislation, approved by the EU Council in May 2024, seeks to harmonize AI rules across the EU, ensuring that AI technologies are safe, transparent, and aligned with fundamental human rights. And while the Act addresses broad aspects of AI use, its impact on the payments industry is particularly profound.
What Are the Key Changes for Payment Providers?
The AI Act categorizes AI systems based on their potential risks, imposing strict requirements on high-risk applications. For payment providers, this means that AI tools used for fraud detection, credit scoring, and transaction monitoring must meet rigorous standards. These systems must undergo thorough testing and validation to ensure they operate safely and transparently. By mandating these checks, the Act aims to prevent AI-driven errors and abuses in financial services, safeguarding consumers and enhancing trust in digital payment systems.
A Risk-Based Framework
At the heart of the AI Act is a risk-based classification system, which assigns AI systems to different categories based on their potential to cause harm. This nuanced approach ensures that the level of regulatory scrutiny is proportional to the risk posed by the AI system. High-risk AI applications, such as those used in critical infrastructure, healthcare, and law enforcement, face stringent requirements. These systems must undergo rigorous testing and validation processes before they can be deployed in the EU market. This framework aims to mitigate the potential dangers of AI while allowing lower-risk technologies to flourish with minimal regulatory interference.
How Does the Act Enhance Transparency in Payment Systems?
Transparency is a cornerstone of the AI Act, requiring high-risk AI systems to be registered in an EU database. For payment providers, this means disclosing detailed information about the AI systems used, including their functionalities and potential impacts. This transparency is crucial in building trust with consumers, who can now understand how their data is processed and protected. Additionally, companies must inform users when AI systems are analyzing their transactions or personal data, ensuring that consumers are aware and can consent to such practices. These measures are designed to foster trust in AI technologies by ensuring that their deployment is open and accountable.
What Are the Compliance and Enforcement Mechanisms?
To ensure compliance, the AI Act establishes a robust governance framework. Payment providers must adhere to strict regulatory standards and are subject to significant penalties for non-compliance. These penalties can be a percentage of the company’s global annual turnover, emphasizing the importance of adhering to the regulations. The Act also introduces an AI Office within the European Commission, a scientific panel of experts, and an AI Board to oversee and enforce the rules. This multi-layered approach ensures that AI systems in the payments industry are consistently monitored and regulated.
What Are the Broader Implications for the Payments Industry?
The introduction of the AI Act is likely to have far-reaching implications for the payments industry. By setting high standards for safety, transparency, and accountability, the Act not only protects consumers but also encourages the development of trustworthy AI systems. Payment providers that comply with these regulations are likely to gain a competitive edge, as they can assure customers of the safety and reliability of their services. Moreover, the EU’s leadership in AI regulation could influence global standards, prompting other regions to adopt similar frameworks and ensuring a harmonized approach to AI governance in the payments industry.
Conclusion
As the AI Act comes into force, its impact will extend beyond Europe, influencing global standards and practices in AI governance. This landmark regulation sets a precedent for how societies can harness the potential of AI while safeguarding human rights and ethical values.
By imposing stringent requirements on high-risk AI systems, enhancing transparency, and promoting innovation, the Act aims to create a secure and trustworthy digital economy. Payment providers must navigate these new regulations carefully, but those that succeed will be well-positioned to lead in an increasingly AI-driven market.
As the Act comes into force, its impact on the payments industry will be closely monitored, setting a precedent for future AI governance worldwide.
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Ugnė (M.) Buračienė | payabl. | Executive Testimonials
In this video, Ugnė, Group CEO of Payabl, discusses the opportunities and challenges in the current payment ecosystem, emphasizing the rapid digitalization and the need for secure, collaborative infrastructure. She highlights the slow adoption of crypto payments and the impact of emerging regulations like MICA. She also explains Payabl’s recent license upgrade in Cyprus, enhancing their ability to offer comprehensive banking and payment solutions. She predicts that instant payments will be the next big trend in the payments industry, despite the challenges they pose. The discussion concludes with a focus on the importance of a seamless and secure payment experience for consumers and businesses. #financemagnates #financialnews #DigitalPayments #CryptoPayments #PaymentTrends #InstantPayments #FinancialTechnolog 📣 Stay updated with the latest in finance and trading! Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/ 👍 Facebook: https://www.facebook.com/financemagnates/ 📸 Instagram: https://www.instagram.com/financemagnates_official 🐦 X (Twitter): https://twitter.com/financemagnates/ 📡 RSS Feed: https://www.financemagnates.com/feed/ ▶️ Telegram: https://t.me/financemagnatesnews Don’t miss out on our latest videos, interviews, and event coverage. 🔔 Subscribe to our YouTube channel for more!🔔
In this video, Ugnė, Group CEO of Payabl, discusses the opportunities and challenges in the current payment ecosystem, emphasizing the rapid digitalization and the need for secure, collaborative infrastructure. She highlights the slow adoption of crypto payments and the impact of emerging regulations like MICA. She also explains Payabl’s recent license upgrade in Cyprus, enhancing their ability to offer comprehensive banking and payment solutions. She predicts that instant payments will be the next big trend in the payments industry, despite the challenges they pose. The discussion concludes with a focus on the importance of a seamless and secure payment experience for consumers and businesses. #financemagnates #financialnews #DigitalPayments #CryptoPayments #PaymentTrends #InstantPayments #FinancialTechnolog 📣 Stay updated with the latest in finance and trading! Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/ 👍 Facebook: https://www.facebook.com/financemagnates/ 📸 Instagram: https://www.instagram.com/financemagnates_official 🐦 X (Twitter): https://twitter.com/financemagnates/ 📡 RSS Feed: https://www.financemagnates.com/feed/ ▶️ Telegram: https://t.me/financemagnatesnews Don’t miss out on our latest videos, interviews, and event coverage. 🔔 Subscribe to our YouTube channel for more!🔔
In this video, Ugnė, Group CEO of Payabl, discusses the opportunities and challenges in the current payment ecosystem, emphasizing the rapid digitalization and the need for secure, collaborative infrastructure. She highlights the slow adoption of crypto payments and the impact of emerging regulations like MICA. She also explains Payabl’s recent license upgrade in Cyprus, enhancing their ability to offer comprehensive banking and payment solutions. She predicts that instant payments will be the next big trend in the payments industry, despite the challenges they pose. The discussion concludes with a focus on the importance of a seamless and secure payment experience for consumers and businesses. #financemagnates #financialnews #DigitalPayments #CryptoPayments #PaymentTrends #InstantPayments #FinancialTechnolog 📣 Stay updated with the latest in finance and trading! Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/ 👍 Facebook: https://www.facebook.com/financemagnates/ 📸 Instagram: https://www.instagram.com/financemagnates_official 🐦 X (Twitter): https://twitter.com/financemagnates/ 📡 RSS Feed: https://www.financemagnates.com/feed/ ▶️ Telegram: https://t.me/financemagnatesnews Don’t miss out on our latest videos, interviews, and event coverage. 🔔 Subscribe to our YouTube channel for more!🔔
In this video, Ugnė, Group CEO of Payabl, discusses the opportunities and challenges in the current payment ecosystem, emphasizing the rapid digitalization and the need for secure, collaborative infrastructure. She highlights the slow adoption of crypto payments and the impact of emerging regulations like MICA. She also explains Payabl’s recent license upgrade in Cyprus, enhancing their ability to offer comprehensive banking and payment solutions. She predicts that instant payments will be the next big trend in the payments industry, despite the challenges they pose. The discussion concludes with a focus on the importance of a seamless and secure payment experience for consumers and businesses. #financemagnates #financialnews #DigitalPayments #CryptoPayments #PaymentTrends #InstantPayments #FinancialTechnolog 📣 Stay updated with the latest in finance and trading! Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/ 👍 Facebook: https://www.facebook.com/financemagnates/ 📸 Instagram: https://www.instagram.com/financemagnates_official 🐦 X (Twitter): https://twitter.com/financemagnates/ 📡 RSS Feed: https://www.financemagnates.com/feed/ ▶️ Telegram: https://t.me/financemagnatesnews Don’t miss out on our latest videos, interviews, and event coverage. 🔔 Subscribe to our YouTube channel for more!🔔
In this video, Ugnė, Group CEO of Payabl, discusses the opportunities and challenges in the current payment ecosystem, emphasizing the rapid digitalization and the need for secure, collaborative infrastructure. She highlights the slow adoption of crypto payments and the impact of emerging regulations like MICA. She also explains Payabl’s recent license upgrade in Cyprus, enhancing their ability to offer comprehensive banking and payment solutions. She predicts that instant payments will be the next big trend in the payments industry, despite the challenges they pose. The discussion concludes with a focus on the importance of a seamless and secure payment experience for consumers and businesses. #financemagnates #financialnews #DigitalPayments #CryptoPayments #PaymentTrends #InstantPayments #FinancialTechnolog 📣 Stay updated with the latest in finance and trading! Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/ 👍 Facebook: https://www.facebook.com/financemagnates/ 📸 Instagram: https://www.instagram.com/financemagnates_official 🐦 X (Twitter): https://twitter.com/financemagnates/ 📡 RSS Feed: https://www.financemagnates.com/feed/ ▶️ Telegram: https://t.me/financemagnatesnews Don’t miss out on our latest videos, interviews, and event coverage. 🔔 Subscribe to our YouTube channel for more!🔔
In this video, Ugnė, Group CEO of Payabl, discusses the opportunities and challenges in the current payment ecosystem, emphasizing the rapid digitalization and the need for secure, collaborative infrastructure. She highlights the slow adoption of crypto payments and the impact of emerging regulations like MICA. She also explains Payabl’s recent license upgrade in Cyprus, enhancing their ability to offer comprehensive banking and payment solutions. She predicts that instant payments will be the next big trend in the payments industry, despite the challenges they pose. The discussion concludes with a focus on the importance of a seamless and secure payment experience for consumers and businesses. #financemagnates #financialnews #DigitalPayments #CryptoPayments #PaymentTrends #InstantPayments #FinancialTechnolog 📣 Stay updated with the latest in finance and trading! Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today: 🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/ 👍 Facebook: https://www.facebook.com/financemagnates/ 📸 Instagram: https://www.instagram.com/financemagnates_official 🐦 X (Twitter): https://twitter.com/financemagnates/ 📡 RSS Feed: https://www.financemagnates.com/feed/ ▶️ Telegram: https://t.me/financemagnatesnews Don’t miss out on our latest videos, interviews, and event coverage. 🔔 Subscribe to our YouTube channel for more!🔔
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Discover Why Sydney is the Place to Be This August! 🏖️🌆 This August, Sydney hosts FMPS:24!
Discover Why Sydney is the Place to Be This August! 🏖️🌆 This August, Sydney hosts FMPS:24!
Discover Why Sydney is the Place to Be This August! 🏖️🌆 This August, Sydney hosts FMPS:24!
Discover Why Sydney is the Place to Be This August! 🏖️🌆 This August, Sydney hosts FMPS:24!
Discover Why Sydney is the Place to Be This August! 🏖️🌆 This August, Sydney hosts FMPS:24!
Discover Why Sydney is the Place to Be This August! 🏖️🌆 This August, Sydney hosts FMPS:24!
Discover Why Sydney is the Place to Be This August! 🏖️🌆 From perfect weather and vibrant festivals to stunning beaches and delicious cuisine, Sydney has it all. 🌞 Explore world-class cultural attractions and natural beauty. But that’s not all – this August, Sydney hosts FMPS:24, Australia’s premier financial event! 📈💼 Join industry leaders, network with professionals, and gain insights into the future of finance, all in the heart of this amazing city. Get Your FREE ticket now: https://bit.ly/4cQSiB1 Don’t miss out on the adventure, culture, and opportunities waiting for you in Sydney. 🌊🏙️ See you in Sydney this August! #fmps #fmps24 #fmevents #NetworkingBlitz #IndustryEvent #FinanceSummit hashtag#Fintech #Networking #AsiaPacific #VisitSydney #Sydney2024 #FMPS24 #TravelAustralia #SydneyEvents
Discover Why Sydney is the Place to Be This August! 🏖️🌆 From perfect weather and vibrant festivals to stunning beaches and delicious cuisine, Sydney has it all. 🌞 Explore world-class cultural attractions and natural beauty. But that’s not all – this August, Sydney hosts FMPS:24, Australia’s premier financial event! 📈💼 Join industry leaders, network with professionals, and gain insights into the future of finance, all in the heart of this amazing city. Get Your FREE ticket now: https://bit.ly/4cQSiB1 Don’t miss out on the adventure, culture, and opportunities waiting for you in Sydney. 🌊🏙️ See you in Sydney this August! #fmps #fmps24 #fmevents #NetworkingBlitz #IndustryEvent #FinanceSummit hashtag#Fintech #Networking #AsiaPacific #VisitSydney #Sydney2024 #FMPS24 #TravelAustralia #SydneyEvents
Discover Why Sydney is the Place to Be This August! 🏖️🌆 From perfect weather and vibrant festivals to stunning beaches and delicious cuisine, Sydney has it all. 🌞 Explore world-class cultural attractions and natural beauty. But that’s not all – this August, Sydney hosts FMPS:24, Australia’s premier financial event! 📈💼 Join industry leaders, network with professionals, and gain insights into the future of finance, all in the heart of this amazing city. Get Your FREE ticket now: https://bit.ly/4cQSiB1 Don’t miss out on the adventure, culture, and opportunities waiting for you in Sydney. 🌊🏙️ See you in Sydney this August! #fmps #fmps24 #fmevents #NetworkingBlitz #IndustryEvent #FinanceSummit hashtag#Fintech #Networking #AsiaPacific #VisitSydney #Sydney2024 #FMPS24 #TravelAustralia #SydneyEvents
Discover Why Sydney is the Place to Be This August! 🏖️🌆 From perfect weather and vibrant festivals to stunning beaches and delicious cuisine, Sydney has it all. 🌞 Explore world-class cultural attractions and natural beauty. But that’s not all – this August, Sydney hosts FMPS:24, Australia’s premier financial event! 📈💼 Join industry leaders, network with professionals, and gain insights into the future of finance, all in the heart of this amazing city. Get Your FREE ticket now: https://bit.ly/4cQSiB1 Don’t miss out on the adventure, culture, and opportunities waiting for you in Sydney. 🌊🏙️ See you in Sydney this August! #fmps #fmps24 #fmevents #NetworkingBlitz #IndustryEvent #FinanceSummit hashtag#Fintech #Networking #AsiaPacific #VisitSydney #Sydney2024 #FMPS24 #TravelAustralia #SydneyEvents
Discover Why Sydney is the Place to Be This August! 🏖️🌆 From perfect weather and vibrant festivals to stunning beaches and delicious cuisine, Sydney has it all. 🌞 Explore world-class cultural attractions and natural beauty. But that’s not all – this August, Sydney hosts FMPS:24, Australia’s premier financial event! 📈💼 Join industry leaders, network with professionals, and gain insights into the future of finance, all in the heart of this amazing city. Get Your FREE ticket now: https://bit.ly/4cQSiB1 Don’t miss out on the adventure, culture, and opportunities waiting for you in Sydney. 🌊🏙️ See you in Sydney this August! #fmps #fmps24 #fmevents #NetworkingBlitz #IndustryEvent #FinanceSummit hashtag#Fintech #Networking #AsiaPacific #VisitSydney #Sydney2024 #FMPS24 #TravelAustralia #SydneyEvents
Discover Why Sydney is the Place to Be This August! 🏖️🌆 From perfect weather and vibrant festivals to stunning beaches and delicious cuisine, Sydney has it all. 🌞 Explore world-class cultural attractions and natural beauty. But that’s not all – this August, Sydney hosts FMPS:24, Australia’s premier financial event! 📈💼 Join industry leaders, network with professionals, and gain insights into the future of finance, all in the heart of this amazing city. Get Your FREE ticket now: https://bit.ly/4cQSiB1 Don’t miss out on the adventure, culture, and opportunities waiting for you in Sydney. 🌊🏙️ See you in Sydney this August! #fmps #fmps24 #fmevents #NetworkingBlitz #IndustryEvent #FinanceSummit hashtag#Fintech #Networking #AsiaPacific #VisitSydney #Sydney2024 #FMPS24 #TravelAustralia #SydneyEvents
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FMPS:24 | Connecting the Future of Finance Across Continents
FMPS:24 | Connecting the Future of Finance Across Continents
FMPS:24 | Connecting the Future of Finance Across Continents
FMPS:24 | Connecting the Future of Finance Across Continents
FMPS:24 | Connecting the Future of Finance Across Continents
FMPS:24 | Connecting the Future of Finance Across Continents
Finance Magnates Pacific Summit 2024 (FMPS:24), is the premier event for the retail investing industry and fintech community in the Asia Pacific region. This dynamic platform connects global expertise, fostering growth and innovation across online trading, fintech, payments, and crypto. Join FMPS:24 to build relationships, explore new possibilities, and gain insights from industry leaders and experts. Register Now: https://bit.ly/4cQSiB1 #fmps24 #fmps #fmevents #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities
Finance Magnates Pacific Summit 2024 (FMPS:24), is the premier event for the retail investing industry and fintech community in the Asia Pacific region. This dynamic platform connects global expertise, fostering growth and innovation across online trading, fintech, payments, and crypto. Join FMPS:24 to build relationships, explore new possibilities, and gain insights from industry leaders and experts. Register Now: https://bit.ly/4cQSiB1 #fmps24 #fmps #fmevents #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities
Finance Magnates Pacific Summit 2024 (FMPS:24), is the premier event for the retail investing industry and fintech community in the Asia Pacific region. This dynamic platform connects global expertise, fostering growth and innovation across online trading, fintech, payments, and crypto. Join FMPS:24 to build relationships, explore new possibilities, and gain insights from industry leaders and experts. Register Now: https://bit.ly/4cQSiB1 #fmps24 #fmps #fmevents #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities
Finance Magnates Pacific Summit 2024 (FMPS:24), is the premier event for the retail investing industry and fintech community in the Asia Pacific region. This dynamic platform connects global expertise, fostering growth and innovation across online trading, fintech, payments, and crypto. Join FMPS:24 to build relationships, explore new possibilities, and gain insights from industry leaders and experts. Register Now: https://bit.ly/4cQSiB1 #fmps24 #fmps #fmevents #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities
Finance Magnates Pacific Summit 2024 (FMPS:24), is the premier event for the retail investing industry and fintech community in the Asia Pacific region. This dynamic platform connects global expertise, fostering growth and innovation across online trading, fintech, payments, and crypto. Join FMPS:24 to build relationships, explore new possibilities, and gain insights from industry leaders and experts. Register Now: https://bit.ly/4cQSiB1 #fmps24 #fmps #fmevents #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities
Finance Magnates Pacific Summit 2024 (FMPS:24), is the premier event for the retail investing industry and fintech community in the Asia Pacific region. This dynamic platform connects global expertise, fostering growth and innovation across online trading, fintech, payments, and crypto. Join FMPS:24 to build relationships, explore new possibilities, and gain insights from industry leaders and experts. Register Now: https://bit.ly/4cQSiB1 #fmps24 #fmps #fmevents #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities