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we share our insights on when the investment discretion shifts from humans to AI by analysing whether a legal definition of artificial intelligence has been determined.
Investment Services & Funds

AI & Funds #1 – investment discretion

When one instructs a painter to draw a portrait (no matter how detailed the instructions may be) the painter will always have discretion in executing the final product. Likewise, in investment funds, the investment manager is instructed to invest according to various rules and timeframes which are detailed in the investment strategy as approved by the competent financial regulator, but there will still remain investment discretion on how the investment strategy is executed. This discretion is normally based on a number of statistically orientated formulas which analyses quantitative and qualitative data. Artificial Intelligence (“AI”) is being increasingly used in these…
Mario Mizzi
8th February 2023
In this series of weekly briefings, insights will be shared on the impact that artificial intelligence is making on the asset management industry and investment services in general.
Investment Services & Funds

AI & Funds – insight briefings

The impact that Artificial Intelligence (“AI”) is making on investment services has been the subject of a recent publication, dated 1st February 2023, which was issued by the European Securities and Markets Authority (“ESMA”). The publication, entitled “Artificial intelligence in EU securities markets”, provides data on the methods that stakeholders are implementing to incorporate powerful digital tools in their regulated financial products. ESMA’s publication makes reference to the inherent notion that AI is an “umbrella” term which incorporates machine-learning as well as other forms of Big Data solutions. In fact, ESMA notes that in the funds industry certain managers use…
Mario Mizzi
3rd February 2023
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Telecoms, Media & Technology

AI’s Responsibility Gap

An autonomous vehicle is heading into another vehicle with five people inside. It cannot brake in time. The two options are: to do nothing and allow itself to crash into the vehicle or to divert its trajectory and crash into a wall, almost certainly killing the autonomous vehicle's sole occupant. This is the Artificial Intelligence version of the 'Trolley Problem' - at its core a philosophical/ethical problem tackled from a number of perspectives, not least by a utilitarian approach.This moral question, which was previously a problem which 'merely' troubled the mind, now troubles us in an actual, physical and even…
Michael Camilleri
2nd October 2019
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Telecoms, Media & Technology

Towards Trustworthy AI: Malta’s Ethical AI Framework Open for Public Consultation

In a bid to establish Malta as the "Ultimate AI Launchpad," the Malta.AI Taskforce has released a public consultation document on its intended ethical framework for Artificial Intelligence technology.The title of the document is self-explanatory: "Towards Trustworthy AI". This reflects the Maltese government's intentions of establishing a stable ground for the future development of disruptive technologies.Building on its National AI Strategy  the government intends to base the future of Malta's AI development on four objectives:A human-centric approachRespect for applicable laws, regulations, human rights and democratic valuesMaximising the benefits of AI systems while reducing risksAligning with international standards and norms. Following…
Michael Camilleri
13th August 2019
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Telecoms, Media & Technology

Malta: The Ultimate AI Launchpad

The Malta.AI Taskforce and the Maltese Parliamentary Secretary for Financial Services, Digital Economy and Innovation has invited members of the public, industry and academia to provide feedback on its High-level policy document for public consultation 'Malta: towards an AI Strategy' (the 'Policy Document').The purpose of the Policy Document is to establish Malta as "amongst the top 10 nations with the highest impact national AI programme." The government argues that Malta has the natural and infrastructural qualities to make it "the Ultimate AI launchpad" - Its small population, climate, use of the English language and legislative and regulatory set-up ensure that…
Michael Camilleri
29th March 2019
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Telecoms, Media & Technology

Artificial Intelligence: Some of the Challenges Ahead

Introduction Reference to Artificial Intelligence ('AI') is likely to bring to mind dystopian pictures of a robot apocalypse as depicted in films such as iRobot or The Matrix or to spark debates on the possibility of machines with 'consciousness'. Yet although we are rightly concerned about AI and the future of mankind, catastrophic thinking may diminish or slow its progress and make us lose sight of its vast potential benefits. AI is more pervasive in our daily lives than one may think. Spotify and Netflix use AI to recommend songs, films or television shows which it considers relevant to our…
Michael Camilleri
21st February 2019