OECD adopts the first intergovernmental standard on AI
On 22 May, OECD formally adopted the first set of intergovernmental policy guidelines on trustworthy AI.
The standard identifies five principles for the responsible deployment of trustworthy AI:
- inclusive growth, sustainable development and well-being;
- human-centred values and fairness;
- transparency and explainability;
- robustness, security and safety;
- and accountability.
These principles are complemented by five recommendations to policy-makers:
- investing in AI research and development;
- fostering a digital ecosystem for AI;
- shaping an enabling policy environment for AI;
- building human capacity and preparing for labour market transformation;
- and international co-operation for trustworthy AI.
International community agrees a roadmap to resolve the digital economy tax challenges
The 129 members of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) adopted Programme of Work to Develop a Consensus Solution to the Tax Challenges Arising from the Digitalisation of the Economy on 31 May 2019.
The work program sets out two pillars to resolve technical issues; one to determine where tax should be paid and on what basis and the other to ensure multinational enterprises pay a minimum level of tax.
The OECD’s goal is to agree a unified long-term solution to the tax challenges posed by digitalisation of the economy by the end of 2020. Read more
Crypto assets, AI and machine learning, fintech on the IOSCO 2019 work program
Crypto-assets, artificial intelligence and machine learning have been identified by the International Organization of Securities Commissions (IOSCO) among its five priority issues for 2019.
Crypto-Assets: IOSCO says that concerns throughout the industry about the trading, custody and settlement, accounting, valuation, intermediation, and investment fund exposure relating to crypto assets have implications for investor protection. Therefore, it will look into how platforms where crypto-assets are traded are regulated and will examine regulation of investment funds with exposures to crypto-assets.
Artificial Intelligence and Machine Learning (AIML): With AIML being increasingly used in financial services, IOSCO will examine the supervision of market intermediaries, including asset managers, that work with AIML. The related ethical challenges will also be examined. Read more
IOSCO Cyber Task Force’s Report
IOSCO Cyber Task Force (CTF) published a report on existing frameworks for cyber regulation. It examines how three internationally recognised cyber frameworks (“Core Standards”) are implemented and identifies potential gaps in their application. The report aims to serve as a resource for financial market regulators and firms, to raise awareness of existing cyber regimes and to promote sound practices: “because of the high degree of interconnectivity between securities markets, infrastructures, and firms, the global financial markets are only as strong as their weakest link”. Read more