Pedro Ferreira Malaquias highlights the European effort to regulate AI “is worth it”
Pedro Ferreira Malaquias, partner at Abreu Advogados, stated today that the European effort to regulate Artificial Intelligence “is worth it” and warned that banks will need to make “a very large investment” in transparency, explainability, and training.
Pedro Ferreira Malaquias was speaking at the Money Conference, organized by Diário de Notícias, which this year focused on “Banking and the Financial Sector in the Age of Uncertainty,” centered around the opportunities and challenges of Artificial Intelligence, cybersecurity, geopolitical risks, regulatory demands, and ESG, among other topics.
Weighing the pros and cons of regulation, the Abreu Advogados partner emphasized that “the effort [to regulate] is worthwhile for the European market,” drawing a comparison between “the American school, which allows the market to function with complete freedom, and the European school, which follows a ‘risk model approach’, identifying and categorizing risks and creating mechanisms to protect individuals and markets.”
“The adoption of Artificial Intelligence is a building under construction and will continue to bring significant risks to various market players. Who will cover those risks, given that there still aren’t enough cases to allow insurance companies to calculate adequate premiums for them?” he emphasized.
Regarding the labor market and potential job losses, the Abreu Advogados partner downplayed the notion of this being a “bogeyman”: “There will naturally be a transformation, perhaps a structural one, but that won’t put many jobs at risk, since with training efforts, those people will be needed to support and monitor the new Artificial Intelligence tools.”
