The ChatGPT artificial intelligence (AI) tool unveiled by OpenAI in November last year has kicked up a flurry of interest around the world, and Taiwan is no exception.
Such tools are likely to change many aspects of people’s lives, from the workplace and healthcare to home living. The question is, do they bring more good than bad to people, or vice versa?
AI refers to the ability of a computer to mimic the capabilities of the human mind, including learning and perceiving, as well as solving problems and comprehending natural languages. It entails the potential of computers to perform the same tasks as humans, or even outperform human intelligence, backed by technological improvements and enhancements in data analytics.
Even as early as a few years ago, there were no signs when the “AI era” would start in earnest, but today ChatGPT makes AI truly tangible for everyone for the first time. While the likes of ChatGPT are not yet perfect, what matters is the progress and direction of human-like machine intelligence development. Indeed, OpenAI’s speech and text-based chatbot is attracting huge interest from various industries, with firms rushing to integrate the technology into their products, including those in the financial industry.
AI technology can help the financial industry in many areas, including customer service, marketing, automation, investment advice, fraud detection and risk management.
However, it could also help criminals pose greater threats to financial institutions, including through data leaks and privacy breaches, the Financial Supervisory Commission said last week. The regulator asked local banks and financial service providers to closely monitor their use of AI tools to ensure data security. It told lawmakers on the legislature’s Finance Committee that it plans to issue guidelines for the responsible use of AI by local financial institutions in August at the earliest.
After Singapore last year set up “fairness, ethics, accountability and transparency” principles for the use of AI in its financial industry, the commission said it would also establish principles for local financial institutions to follow. That is, if financial institutions want to adopt AI tools in their business operations, they must have the capacity to control the technology and determine the level of tolerable risk. They would also be held accountable for any mishaps.
The Securities and Futures Bureau has proposed tighter supervision of AI-powered investment consulting services offered by local securities companies, after excitement over so-called robo-advisers fueled a surge in business over the past year: The number of clients grew 17 percent annually to 167,000 in the first quarter of this year, while assets managed by robo-advisory programs rose 42 percent year-on-year to NT$6.9 billion (US$225.33 million).
The commission seems to have no intention of drafting special legislation to regulate the use of AI in the financial sector for the time being. Instead, it is focusing on establishing a self-regulating mechanism for service providers that enables financial institutions to monitor their own legal, ethical and security standards.
Even though the commission has adopted a hands-off approach on this issue, it should still guide financial institutions in establishing robust protection mechanisms against possible harm from the use of AI. In the meantime, it must consider whether it would eventually take the reins to keep up with international trends and the financial industry’s demands.
The return of US president-elect Donald Trump to the White House has injected a new wave of anxiety across the Taiwan Strait. For Taiwan, an island whose very survival depends on the delicate and strategic support from the US, Trump’s election victory raises a cascade of questions and fears about what lies ahead. His approach to international relations — grounded in transactional and unpredictable policies — poses unique risks to Taiwan’s stability, economic prosperity and geopolitical standing. Trump’s first term left a complicated legacy in the region. On the one hand, his administration ramped up arms sales to Taiwan and sanctioned
The Taiwanese have proven to be resilient in the face of disasters and they have resisted continuing attempts to subordinate Taiwan to the People’s Republic of China (PRC). Nonetheless, the Taiwanese can and should do more to become even more resilient and to be better prepared for resistance should the Chinese Communist Party (CCP) try to annex Taiwan. President William Lai (賴清德) argues that the Taiwanese should determine their own fate. This position continues the Democratic Progressive Party’s (DPP) tradition of opposing the CCP’s annexation of Taiwan. Lai challenges the CCP’s narrative by stating that Taiwan is not subordinate to the
US president-elect Donald Trump is to return to the White House in January, but his second term would surely be different from the first. His Cabinet would not include former US secretary of state Mike Pompeo and former US national security adviser John Bolton, both outspoken supporters of Taiwan. Trump is expected to implement a transactionalist approach to Taiwan, including measures such as demanding that Taiwan pay a high “protection fee” or requiring that Taiwan’s military spending amount to at least 10 percent of its GDP. However, if the Chinese Communist Party (CCP) invades Taiwan, it is doubtful that Trump would dispatch
Taiwan Semiconductor Manufacturing Co (TSMC) has been dubbed Taiwan’s “sacred mountain.” In the past few years, it has invested in the construction of fabs in the US, Japan and Europe, and has long been a world-leading super enterprise — a source of pride for Taiwanese. However, many erroneous news reports, some part of cognitive warfare campaigns, have appeared online, intentionally spreading the false idea that TSMC is not really a Taiwanese company. It is true that TSMC depositary receipts can be purchased on the US securities market, and the proportion of foreign investment in the company is high. However, this reflects the
RSS