The importance of generative AI technology for the financial sector
Generative AI and distributed ledger technologies (DLT) are key areas driving progress. Thanks to these technologies, digitalization is reaching a new level, requiring the transformation of significant processes. The financial industry is a prime example of this, having changed dramatically over the last 10 years.
The EU government is interested in accelerating the pace of innovation. This allows the region to strengthen its competitiveness and offer more business opportunities. According to European official Jack Chambers, improving EU legislation and policy deserves special attention. Transforming existing processes will provide a solid foundation for the digital revolution. This will also improve the integration of AI into financial and public services.
Digital transformation successes in Ireland
Ireland is one of the pioneering EU countries that recognizes the importance of using generative AI technologies. Since 2021, the country has implemented a national strategy to develop and integrate artificial intelligence into government operations. As part of this initiative, the government is taking the following steps:
– activities to increase SME confidence in innovative technologies;
– improving SME awareness of AI security and regulations;
– introducing GenAI and DLT technologies into the payments sector;
– finance law that provides access to cash infrastructure.
Additionally, Ireland supports EU policies that aim to improve accessibility to digital finance. These policies include the PSD3 Payment Services Directive, which opens up opportunities for the banking sector. Furthermore, the European Commission is implementing a regulation to govern the cryptoasset market (MiCAR). These initiatives will foster the integration of advanced technologies into business and government processes. They also ensure transparency and security in the blockchain sphere, which is crucial for its further development.
A key goal of the Irish government is to develop a robust digital infrastructure to promote economic growth.
Chambers noted the high potential of the country’s fintech and IT sectors. Ireland offers a highly skilled workforce and a well-developed ecosystem for introducing advanced technologies. Government support and efforts from the Central Bank have played an important role in this. The Central Bank not only recognizes the benefits but also implements them in its operations. As a result, it regularly expands the possibilities of digital assets and increases the transparency of their use. One of its goals is to unlock the potential of fintech for the Irish economy. Fintech’s capabilities will strengthen the local market and make it attractive to investors. To this end, the Central Bank is developing flexible rules for the sector’s operation.
