Financial Services Cloud Council and Forum

The fragmentation and divergence of regulations can create operational risks for financial institutions and in support of one regulations FIs may inadvertently, or even by choice prioritize and deploy non-compliant AI systems, exposing themselves to a variety of enforcement actions. This is not counting any of the high and escalating costs of compliance and regulatory technologies across multiple regulatory regimes.  While regulators and policy makers are doing what they think is in the best interests of their constituencies they often miss the unintended consequences and impacts that can deter smaller firms from entering certain markets, potentially stifling innovation and competition.  The fragmentation and inconsistencies in national level AI transparency, explainability, governance, etc. regulations create a complex regulatory landscape that is skyrocketing in a confluence or miasma of risks. FIs, especially banks try to navigate varying requirements across different jurisdictions, leading to increased compliance costs and operational burdens and this is now becoming a moat that stifles innovative startups.