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Innovation and artificial intelligence: Do we need a regulatory framework?

AI continues to revolutionize the way we interact with technology and opens up a world of possibilities in diverse fields, from medicine to the financial industry. However, its progress also poses challenges in terms of rights protection and regulation. In this article, I will mention several recent examples related to the defense of intellectual property that made me think about the future AI Act. Let's get started!

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Óscar Barba

Co-founder & CTO of Coinscrap Finance

The New York Times takes legal action against OpenAI and Microsoft

Recently, the internationally renowned newspaper filed a lawsuit against the technology giants, alleging copyright infringement. @nytimes accuses these companies of illegally copying millions of articles to train their artificial intelligence services, such as ChatGPT. This lawsuit is very significant, because it is the first time that a mass media in the United States faces the most recognized brands in the field of AI.

The Times maintains that the illegal use of its content threatens its ability to provide its information services and that OpenAI and Microsoft are taking advantage of the newspaper’s investment in quality journalism without its permission. Additionally, he notes that the AI tools generated by these companies closely imitate the Times’ content and often attribute false information to the newspaper. This copyright infringement not only deprives the media of revenue, but also contributes to misinformation online.

According to the statement to which CNN had access, Diane Brayton, executive vice president & general counsel of The New York Times, highlighted that the company recognizes the potential of generative artificial intelligence but ensures that its business success should not be achieved at the expense of journalistic institutions. This lawsuit is the latest in a series trying to stop the alleged “screening” of huge amounts of Internet content without compensation.

The News Media and Digital Platforms Bargaining Code in Australia

For its part, in a pioneering move, the Australian House of Representatives approved – a few months ago – a law that forces Facebook and Google to pay publishing companies for the content they show on their platforms. This law establishes an arbitration mechanism that allows the media to negotiate with big technology companies a fair compensation for the information they generate.

Its implementation was the result of a long battle between media and technology companies. Facebook, in particular, temporarily blocked news in Australia in protest against this rule, but eventually lifted the veto after the Government made amendments to the bill. This regulation has become a model for other countries also seeking to protect the rights of journalists in the age of AI.

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Is the regulatory text of artificial intelligence really necessary?

Let’s see… AI regulation may seem like a restriction on innovation, but it is important to lay on the table a clear and equitable legal framework capable of driving technological progress. Regulation ensures that companies operate within ethical and legal boundaries, which in turn builds consumer trust and promotes companies’ adoption of new technologies.

We have already seen how generative AI is affecting the media. At Coinscrap Finance we know very well the implications it has for banks and insurers and that is why we guarantee maximum protection of the data they guard in all our developments. The rules prepared by the authorities must allow companies to develop AI solutions without infringing on the rights of others and ensuring that citizens are safe from manipulation and misinformation.

You may be interested to know about the current state of open banking regulation around the world.

What does the future of the Artificial Intelligence Law hold for us?

Without a doubt, any type of law that arises on the matter must remain in constant evolution, due to the transformative nature of technology. The recent approval of the Artificial Intelligence Act in the European Union is an example of how governments are working to protect fundamental rights and values in the context of new generative tools.

It is important to promote transparency and accountability by requiring that AI systems which interact with users be identified as such. As a FinTech developer of our own AI engine, we are convinced that future regulations will promote an environment in which trust and security encourage companies and citizens to get the most out of innovation.

How AI can improve the user experience at financial institutions

This technology already serves us through our online banking in the form of a personal assistant, making our finances simpler. AI streamlines everything, from transactions to loan approval. Thanks to it, we can better understand our expenses, seeing a detailed classification of the merchants where we consume, including their geolocation and the carbon footprint associated with the purchase made.

Due to the fact that AI knows our tastes, concerns and habits, it is able to offer us the perfect option at every moment of our life. Furthermore, as it does not present the typical biases of a human being, it is capable of giving objective financial recommendations and investment proposals that are not influenced by any type of emotion. But most importantly, it distinguishes each and every one of us as unique individuals and can therefore hyper-personalize your communications and suggestions.

It can be said that AI not only allows for more informed decisions, but also offers more personal attention –although it may be hard to believe–. Going forward, it is essential that governments and businesses work together to establish a clear and equitable legal framework that drives innovation and technological progress for the benefit of all.

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About the Autor

Óscar Barba is co-founder and CTO of Coinscrap Finance. He is an expert Scrum Manager with more than 6 years of experience in the collection and semantic analysis of data in the financial sector, classification of bank transactions, deep learning applied to stock market sentiment analysis systems and the measurement of the carbon footprint associated with transactional data. 

With extensive experience in the banking and insurance sector, Óscar is finishing his PhD in Information Technology right now. He is an Engineer and Master in Computer Engineering from the University of Vigo and Master in Electronic Commerce from the University of Salamanca. In addition, Scrum Manager and Project Management Certificate from the CNTG, SOA Architecture and Web Services Certificate from the University of Salamanca. He recently obtained the ITIL Fundamentals certification, a recognition of good practices in IT service management.

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