In 2024, a pivotal moment in AI governance emerged with the launch of the Partnership for Global Inclusivity on AI (PGIAI). Announced by U.S. Secretary of State Antony Blinken, this initiative brought renewed focus to embedding ethical principles into AI systems, highlighting the importance of transparency, fairness, accountability, and respect for diverse contexts. For Corlytics, these developments underscored the growing commitment to aligning technological innovation with ethical standards, a commitment that continues to shape our approach to regulatory compliance.
The Global Priority of Ethical AI in RegTech
As AI becomes increasingly influential in regulatory technology, it brings about critical ethical responsibilities. The recent Partnership for Global Inclusivity on AI (PGIAI), launched by U.S. Secretary of State Antony Blinken, highlights the importance of aligning AI development with global ethical standards that prioritise transparency, fairness, accountability, and respect for local contexts.
Why Ethical AI Matters in RegTech
- Building Trust: AI-driven RegTech solutions must be transparent to foster trust across financial institutions, regulators, and customers. Explainable AI helps people understand how decisions are made, ensuring accountability and reducing biases.
- Respecting Data and Culture: PGIAI’s commitment to inclusivity reminds us that RegTech needs to respect regional data norms and cultural contexts. Ethical AI in RegTech considers socio-economic factors to ensure that systems don’t unintentionally marginalise any group.
- Promoting Fairness: PGIAI’s partners including tech giants like IBM, Meta, Microsoft, and OpenAI are committed to AI that’s both responsible and equitable. In RegTech, this means AI should support fair financial practices, minimising biased decision-making and promoting inclusive growth.
Real-World Commitments Shaping RegTech
The U.S. government’s new commitments illustrate how the public and private sectors are coming together to develop ethical AI. For instance, Meta is collaborating with UNESCO to support indigenous language translations, while IBM is providing tech access to underserved communities. In RegTech, this focus on inclusivity could mean the difference between deepening inequality and building a more accessible financial landscape.
Likewise, Microsoft and Nvidia’s investment in expanding AI access, especially in underserved areas, opens new doors for RegTech to make regulatory compliance simpler and more affordable, particularly for SMEs in developing markets.
Building an Ethical AI Foundation for RegTech
What can companies do? Here are a few ideas:
- Adopt Global Standards: Use frameworks like the U.S. backed Risk Management Profile for AI to balance innovation with human rights protections.
- Invest in Transparent AI Systems: Make sure AI-driven decisions in financial management are explainable and fair to maintain trust.
- Expand Access and Training: Training programmes in ethical AI, like Google’s AI skilling initiatives, can democratise AI knowledge and reduce the risks of misuse.
As global stakeholders prioritise ethical AI, RegTech has a unique opportunity to drive innovation while promoting a fairer, more resilient financial ecosystem. It’s a future where AI not only streamlines compliance but builds a more inclusive economy, and one that benefits everyone.