Jackie Hunter is one of the UK’s most respected voices in pharmaceutical innovation and ethical artificial intelligence. With a career spanning senior leadership roles at GlaxoSmithKline, the Biotechnology & Biological Sciences Research Council, and BenevolentAI, Jackie has been at the forefront of advancing science, technology, and open innovation. Today, she continues to shape the future of healthcare and biotechnology as Chair of the Board at Brainomix Ltd, the Stevenage Bioscience Catalyst, and Biocortex Ltd.

Jackie’s pioneering work has earned her international recognition, from being appointed CBE for Services to the Pharmaceutical Industry to being named one of Forbes’ Top 20 Women Globally Advancing AI Research. She is also a Fellow of the Academy of Medical Sciences and a Visiting Professor at Imperial College London, further cementing her authority in both academia and industry.

As a keynote speaker with The AI Speakers Agency, Jackie is in high demand for her insights on how AI can responsibly transform drug discovery, healthcare systems, and the wider life sciences sector.

In this interview, Jackie shares her views on the future of AI in healthcare, the ethical challenges it raises, and how businesses can successfully adopt these powerful technologies.

Q: How will artificial intelligence shape the future of healthcare?

Jackie Hunter: “Successful artificial intelligence is already shaping the future of healthcare. It’s being employed in radiology, in pathology, in triaging patients, and downstream in terms of being able to do more remote home care and other implications for health services more generally.

I think the issue to really realise the potential of artificial intelligence in healthcare is to ensure that you have a commitment to adoption across the healthcare landscape in a particular area. You have senior management buy-in, but more importantly, that the users are fully engaged, because artificial intelligence in its implementation is not just technology, it is also a social science.”

Q: What advice do you have for businesses wanting to implement AI technologies?

Jackie Hunter: “I think for businesses to successfully implement AI technologies, they really need to look at, first of all, what is the problem they’re trying to solve. Are they going to do the same process but much more efficiently, for example, combining chemical synthesis and screening robotically to enhance iteration and throughput, or are you radically trying to transform the process or the question that you have? That, in a disruptive way, can be exceptionally valuable but also a lot harder to implement.

I think for businesses at the moment, in the pharmaceutical industry, for example, implementation is quite fragmented. Some companies, like Amgen, are very committed and are integrating AI across the whole value chain. Other companies are carrying out pilots, essentially putting their toe in the water.

The analogy that I use is in the 1990s: molecular biology. We understood about cloning genes, understood about DNA – RNA was just becoming really important in healthcare and the pharmaceutical industry – and we had departments of molecular biology. Now, molecular biology is just seamlessly integrated in everything, every approach that people have, whether it’s looking at patient stratification or target identification.

I think to truly embrace the power of AI, AI needs to be thoroughly embedded in the domain expertise, rather than seen as something separate. Those companies that have really put AI into a box without integrating it into the domain expertise are not likely to be as successful as those that are really trying to instil it across the whole organisation.”

Q: What are some ethical challenges that artificial intelligence poses?

Jackie Hunter: “A lot of people are worried about the ethical challenges of artificial intelligence, and they are right to be so. In the sense that, first of all, the quality of the data is really important – to make sure that, for example, when you’re developing clinical trial algorithms, you’re really looking across a whole range of patient populations, incorporating different ethnicities, socio-economic class, etc., for it to be truly representative. This is especially true where people are using synthetic data for enhancing the size of their training sets.

The second ethical question is really about bias; not just the data bias, but also the bias in terms of interpretation and downstream application of AI.

Then, of course, we need to have transparency. How are the AI models coming up with their solutions? In terms of supervised learning, this is quite easy because you know how you’ve trained the algorithm. But for unsupervised learning, where you don’t really know the parameters on which the algorithm is making the decisions, you really need to be able to delve down and explain how the algorithm is coming up with its recommendations.

And Demis Hassabis of DeepMind (now part of Google DeepMind) says that one of the key things he’s looking to do in his organisation is to develop AI solutions where the AI will come back and tell you how it has actually come up with its recommendations.”

Q: How can innovation in other sectors be applied to healthcare?

Jackie Hunter: “Traditionally, innovation in other sectors has moved more rapidly than in the healthcare sector, both in terms of public healthcare and also private healthcare. Industries like the pharmaceutical industry have tended to hide behind the fact that there are, of necessity, a lot of regulations and rules in place.

But you see large corporations in, say, the petrochemical industry, like British Petroleum, can move very quickly and adopt change. If we look at the example of electric vehicles, within a few years the industry had pivoted from downplaying the potential impact of electric vehicles to really embracing the fact that many governments were driving them to accelerate development in this area.

In healthcare, I think we have to look at ways in which these industries have been able to incorporate new methodologies and principles more rapidly. It is also by looking at the way in which they have utilised their employees, educated their employees, and incentivised their employees to take up that new technology – rather than feeling threatened by it.

This is a particular issue, I think, in healthcare because there are concerns from people that technologies like artificial intelligence will replace people. But actually, I think the way to phrase this is that they will allow people to work more effectively and efficiently, and to focus on those things that are harder to solve—those more difficult cases—and free them up to really engage with patients a lot more.

So, I think we have to look at how these large healthcare organisations can embrace being agile and innovative, at the same time as still maintaining their ethical and legal responsibilities.”

Q: What does ‘open innovation’ mean and why is it important?

Jackie Hunter: “Open innovation is a topic very dear to my heart. In fact, the Stevenage Bioscience Catalyst – the science park at the GlaxoSmithKline site – was initially branded as an open innovation campus when I developed the concept for it.

It was a concept that Henry Chesbrough developed initially, but companies like Procter & Gamble, with their “Connect and Develop” thesis, had already embraced this. It is about really appreciating what is absolutely core to your business to have control over, the internal innovation you need, and where, by going outside of your business, you can drive innovation and value for the business.

An example would be, if you were looking to set up a new chemical synthesis platform, would you develop it in-house or have you gone outside and seen there’s a solution out there that would be much more efficient to partner with, or even acquire, rather than spending the time trying to develop it yourself?

Likewise, a lot of companies waste value by having IP internally that they are not using – which could readily be spun out. The important thing there is developing the right business model. So, it is really about how to enable innovation to flow most effectively internally, whilst at the same time ensuring that you are always looking outside to bring relevant innovation in – rather than reinventing the wheel.”

This exclusive interview with Jackie Hunter was conducted by Megan Lupton, Senior Content Executive at The AI Speakers Agency. 

The post The Future of AI in Healthcare: Jackie Hunter on Innovation, Ethics and Adoption appeared first on European Business & Finance Magazine.

December inflation data marks symbolic milestone after years of turbulence, though markets remain divided on whether European Central Bank will resume rate cuts in 2026

Inflation Returns to Target

Eurozone inflation fell to precisely 2.0% in December, meeting the European Central Bank’s price stability target and reinforcing signs that the sharp surge in consumer prices seen over recent years is finally subsiding. Flash estimates published by Eurostat on Wednesday showed the annual rate slowed from 2.1% in November, exactly in line with market expectations and marking a symbolic milestone for policymakers who spent the past three years battling inflation rates that peaked above 10%.

Underlying price pressures also continued their gradual decline. Core inflation, which strips out volatile food and energy components and is closely monitored by the ECB’s Governing Council, fell to 2.3% year-on-year from 2.4% in November—its lowest level since August. On a monthly basis, consumer prices rose by just 0.2% in December, rebounding modestly from a 0.3% decline the previous month.

Energy Deflation Drives Headline Decline

Energy prices remained firmly in negative territory, falling 1.9% compared with a year earlier—a key factor behind the broader slowdown in headline inflation. The decline represents a sharp acceleration from November’s 0.5% drop and reflects both favourable base effects and sustained weakness in global oil markets. Food, alcohol, and tobacco prices rose 2.6%, the highest rate since September, while services inflation—the most persistent component—edged down to 3.4% from 3.5% in November.

Non-energy industrial goods inflation remained subdued at 0.4%, slightly down from the prior month, as retailers navigated weak consumer demand and increased competition from Chinese imports. The divergence between stubborn services inflation and falling goods prices underscores the complex dynamics facing ECB policymakers as they assess the sustainability of the current inflation trajectory.

Wide Variations Across Member States

Inflation rates varied dramatically across the bloc, highlighting persistent economic disparities within the monetary union. Cyprus recorded the lowest annual inflation at just 0.1%, while Estonia and Slovakia tied for the highest at 4.1%. Germany’s inflation came in at 2.0%, sharply down from November’s 2.6% reading, while France posted a surprisingly weak 0.7%. Italy and Spain recorded rates of 1.2% and 3.0% respectively, with the Netherlands at 2.5%.

The wide dispersion in national inflation rates—ranging across 40 percentage points—complicates the ECB’s one-size-fits-all monetary policy and could fuel renewed debate about the appropriateness of the single currency framework for economies at vastly different stages of the economic cycle.

Market Reaction and Policy Outlook

Financial markets showed limited immediate reaction to the data. The euro held steady at $1.1685 against the dollar, while the pan-European Stoxx 600 index remained broadly flat. German Bund yields fell five basis points to 2.78%, reflecting investor confidence that inflation remains under control. Germany’s DAX extended its rally to a fresh record high of 25,150, marking a seventh consecutive day of gains led by industrial giants Siemens and Siemens Energy.

With both headline and core inflation now stabilising within the target range, financial markets see limited scope for immediate action by the ECB. According to the betting platform Polymarket, there is a 97% probability that interest rates will remain unchanged at the next Governing Council meeting in February. The odds of a rate cut at any point during 2026 stand at 45%, while a rate hike is viewed as highly unlikely at just 11%.

ECB’s Delicate Balancing Act

“The key takeaway is that price pressures are normalising after several turbulent years,” said Professor Emeritus Joe Nellis, economic adviser at MHA. “Headline and core inflation are now moving within a relatively narrow range, which suggests that the extreme volatility of the recent past is behind us, even if risks have not disappeared.”

The ECB held its key deposit facility rate at 2.0% for a fourth consecutive time in December, following its last rate cut in June. The central bank’s latest staff projections show headline inflation averaging 2.1% in 2025, dipping to 1.9% in 2026, falling further to 1.8% in 2027, before returning to exactly 2.0% in 2028. Core inflation is expected to decline more gradually, stabilising at 2.0% by 2027-28.

However, policymakers face a complex set of crosscurrents that make the path forward uncertain. Falling energy costs, a strong euro, surging Chinese imports, and moderating wage demands could all pull prices lower. Offsetting these disinflationary forces are increased defence spending, Germany’s anticipated fiscal expansion, a tight labour market, healthy domestic demand, and ongoing geopolitical stress—all of which could push prices higher.

“The ECB’s task now is to support a recovery without allowing inflation to reignite,” Nellis added. “That balancing act will define the policy debate over the coming months.” Michael Field, chief equity strategist at Morningstar, noted that while the 2% reading is “minor,” it gives the ECB justification for potential rate cuts in 2026, which “should please equity markets.”

The evolving geopolitical landscape adds another layer of complexity. Professor Nellis highlighted that the potential release of Venezuela’s vast oil and gas resources following recent US actions “could influence Eurozone prices later in the year,” though the direction and magnitude of such effects remain highly uncertain.

The post Eurozone Inflation Hits 2% — What It Means for ECB Rate Cuts, Bonds and European Stocks appeared first on European Business & Finance Magazine.

This analysis forms part of our coverage of the European banking sector and European Business News, and is updated alongside daily reporting in the European Business Magazine newsroom.

Europe’s financial system is undergoing its most profound transformation since the introduction of the euro. What began as a wave of smartphone-based challenger banks offering sleek apps and low-cost accounts has evolved into a wholesale rewiring of how money moves, how credit is allocated, and how customers interact with finance.

Banks no longer compete primarily on the number of branches they own or the size of their balance sheets. They compete on software, data, user experience and the speed with which they can deploy capital.

The app replaced the branch

For most Europeans, the bank is no longer a place — it is a screen. Millions now manage their money entirely through mobile apps, receiving instant payment alerts, real-time spending insights and on-demand customer support. Branch visits have collapsed, and even large banks are closing physical locations across the continent.

This shift is not just cultural; it is economic. Branch networks are expensive. Legacy IT systems are slow and brittle. Digital platforms, by contrast, scale cheaply. Once the software is built, adding a new customer costs almost nothing. That radically changes the economics of banking especially European business banking.

Digital challengers have used this advantage to expand rapidly across borders, eroding the dominance of national incumbents and pushing Europe’s financial system toward a more integrated, competitive model.

Open banking changed everything

Regulation has been as important as technology. Europe’s open-banking rules forced traditional lenders to allow licensed third parties to access customer account data and initiate payments — with the customer’s consent. The intention was to boost competition. The effect was to turn finance into a platform business.

Today, a consumer might use one app for budgeting, another for investing, a third for international transfers and a fourth for borrowing — all connected to the same underlying bank account and same applies to multi-currency business accounts. The bank still holds the deposits, but the customer relationship is increasingly owned by technology platforms.

That is a fundamental break from the past, when banks controlled both the money and the interface.

How digital banks actually make money

Digital banks do not rely primarily on interest margins. Their business models are built around fees, subscriptions and data-driven services.

The first layer of revenue usually comes from payments. Every time a customer uses a debit or credit card, the bank earns interchange fees. Foreign-exchange transactions generate mark-ups. Premium accounts bring in subscription income.

Once a large, stable deposit base is established, digital banks move into lending. With access to real-time spending data and open-banking feeds, they can assess risk far more precisely than traditional credit models allow. That enables them to price loans dynamically and target profitable niches.

This combination of low-cost distribution and high-margin digital services has attracted huge amounts of capital, reshaping European markets and driving strong performance among listed fintechs and payments companies.

Incumbent banks are fighting back

Europe’s largest banks are not standing still. They are investing billions in cloud computing, cybersecurity, fraud detection and data analytics. Many are rebuilding their core systems from scratch, a process that can take years and cost more than an acquisition.

The challenge is that modernisation must happen while the bank continues to operate. Payments must clear. Salaries must be paid. Regulators must be satisfied. That makes large-scale transformation far harder for incumbents than for digital natives starting with a clean slate.

Some banks have tried to launch digital subsidiaries to escape their legacy systems. Others are partnering with fintechs or acquiring technology outright. The success of these strategies will determine which institutions remain relevant in the next decade.

Digitalisation is changing credit

Technology is also transforming how credit is allocated. Automated underwriting, transaction data and alternative scoring models allow lenders to evaluate borrowers in minutes rather than weeks. That is particularly powerful for small businesses and freelancers, who often struggle to obtain bank financing under traditional rules.

Digital rails also support the rise of private capital. Faster onboarding, richer data and automated servicing make it easier for non-bank lenders to originate and manage loans. This is one reason private credit has expanded so rapidly, as described in our coverage of how banks fuel the private credit boom.

The payments layer is where the money is

In the digital economy, payments are the gateway to everything else. Control the transaction and you control the data, the customer relationship and the cross-selling opportunities. That is why the battle between banks, fintechs and big technology firms is fiercest in payments.

Card networks, wallets, instant transfers and embedded finance are becoming the new financial infrastructure. Companies that dominate this layer are increasingly valuable — and increasingly powerful.

That has major implications for competition policy, consumer protection and financial stability, especially as payments firms grow into full-service financial platforms.

A regulatory balancing act

Europe faces a difficult choice. It wants to encourage innovation and competition, but it also wants to maintain stability and protect consumers. Fragmented national rules make it harder for digital banks to scale, echoing the broader challenges that have long held back Europe’s single market, explored in our analysis of who killed Europe’s single market dream.

At the same time, regulators must grapple with new risks: cyberattacks, cloud outages and the concentration of critical infrastructure in a handful of technology providers.

What the future holds

The next phase of Europe’s digital-banking revolution will be defined by three forces: consolidation, profitability and infrastructure.

Not every challenger will survive. Investors are already pushing fintechs to prove that growth can translate into durable profits. Meanwhile, whoever controls the core digital rails — payments, identity, data — will wield enormous influence over the entire financial system.

For traditional banks, the message is clear: adapt or become invisible.

For ongoing coverage of Europe’s financial transformation, follow European Business News and the European Business Magazine newsroom

The post How Digital Banking Is Rewriting Europe’s Financial System appeared first on European Business & Finance Magazine.

Smart manufacturing refers to the integration of advanced technologies, data analytics, and automation in manufacturing processes to optimize efficiency, productivity, and decision-making. It involves using sensors, the Internet of Things (loT) devices, artificial intelligence (Al), machine learning (ML), and data analytics to create interconnected and intelligent manufacturing systems. Smart manufacturing aims to enable real-time monitoring, analysis, and control of various aspects of the production process. This leads to improved quality, reduced costs, shorter production cycles, and increased flexibility in responding to changing market demands. 

Smart manufacturing centers around utilizing data, where data-driven insights determine actions like what tasks should be performed and when. Smart factories are equipped with systems that deliver real-time data, which is essential to the smart manufacturing framework. Analyzing this data improves the efficiency, transparency, and adaptability of production processes. However, safeguarding data remains a key challenge when deploying these technologies. Major drivers of the smart manufacturing market include the rising demand for innovative technologies to minimize manufacturing downtime and production waste, the high emphasis on boosting manufacturing efficiency through automated production, and the rising government expenditure on 3D printing technologies. In addition, accelerated developments in industrial lloT and cloud computing and the growing investment in infrastructure development create significant growth opportunities in the smart manufacturing market. According to MarketsandMarkets the global smart manufacturing market was valued at USD 233.33 billion in 2024 and is projected to reach USD 479.17 billion by 2029; it is expected to register a CAGR of 15.5% during the forecast period. Increasing government expenditure on 3D printing technologies is driving the growth of the smart manufacturing market. Whereas high initial capital investment is restraining the growth of the smart manufacturing market. 

The industrial robotics segment is expected to exhibit the second highest CAGR during the forecast period. The development of industrial robotics has taken off remarkably due to the notable improvements in productivity, quality, cost, safety and others that have been observed. The introduction of robots to perform simple and repetitive functions allows for a 24 hour service with minimal chances of human errors. Development of technology such as artificial intelligence (AI) and collaborative robots has also stimulated the use of robotics in areas such as manufacturing, warehousing, logistics and so on. Oil & Gas segment to is expected to hold the second largest share in smart manufacturing market in 2024. The chief reason the oil and gas industry takes the lead in the smart manufacturing market is primarily due to challenges and necessities, this sector specifically needs. Due to the specific emphasis on safety, efficiency, remote locations, data-driven decisions, and strict regulations followed in this sector has lead it to hold the second largest market share. Predictive maintenance, automation, and robots are some of the critical smart technologies that help the industry lower costs, improve safety, and increase efficiency.

The market in North America is expected to gow the second highest CAGR during the forecast period. The good business ecosystem in the US – with reformative initiatives in tax codes, significant package announcements for manufacturing and infrastructure companies, and availability of major technology providers – augur well for smart manufacturing technology adoption in the region.

In addition, the intense focus on optimum asset utilization, the enforcement of stringent government regulations for workplace and personal safety, and the high awareness of the need to control and assure output quality in oil & gas, chemicals, and food & beverages industries drive the demand for machine condition monitoring systems and plant asset management (PAM) solutions in the region. Adopting smart manufacturing technologies has become essential for optimizing resources and reducing wastage. Both process and discrete industries leverage real-time production data to enhance efficiency and streamline operations. They rely on automation systems to reduce workload, utilize resources optimally, and minimize human intervention. Advanced human-machine interface (HMI) solutions and connectivity technologies are significantly improving the quality, productivity, and mobility of plant assets. Industries, such as food & beverages, oil & gas, metals & mining, automotive, semiconductor & electronics, and aerospace & defense, increasingly adopt smart manufacturing equipment, such as industrial robots, field devices, and smart machinery. Integration of systems, such as enterprise resource planning (ERP), supervisory control and data acquisition (SCADA), product lifecycle management (PLM), and programmable logic controller (PLC), with manufacturing execution systems (MES) enhances process efficiency and output quality. 

Mechanical failures remain a major cause of unplanned production stoppages, prompting the development of solutions to reduce predictive maintenance costs and ensure safety. Wireless communication technology enables small, easy-to-install sensors to provide high-frequency condition monitoring, overcoming cabling limitations and allowing for remote monitoring. Machine vision applications, such as inspection and measurement, further drive the adoption of automation technologies, enhancing visibility and control across manufacturing processes.

RISING AWARENESS ABOUT ENVIORNMENTAL, BIODIVERSITY 

Sustainability and utilization of environmentally friendly materials stand out as significant trends in advanced technologies such as digital twins, 3D printing , and so on. As various industries aim to harmonize technological progress with ecological consciousness, embracing more environmentally sustainable approaches within 3D printing is anticipated to gain momentum and foster expansion. Materials used in 3D printing are as important as printers. The most used material for 3D printing is polymer, though metals, paper, and organic tissues can also be used. Developing new materials and making them available for 3D printing is expected to increase the adoption of industrial 3D printing globally. Other materials used in this process are thermoplastics, photopolymers, ceramics, platinum, gold, sterling silver, precious-plated metals, strong and flexible plastics, frosted detail plastics, acrylic plastics, metallic plastics, brass, bronze, steel, full-color sandstone, porcelain, castable wax, elastoplastic, and aluminum. These newly developed materials have increased the adoption of 3D printing technologies in various end use industries. 

RAPID INDUSTRIALIZATION, ECONOMIC GROWTH, AND ECOLOGICAL CONCERNS 

Rapid industrialization, economic growth, and ecological concerns collectively create an opportunistic environment for the sustainable manufacturing market. As countries undergo rapid industrialization and economic expansion, there is a heightened awareness of the environmental impacts associated with traditional manufacturing practices. This awareness, coupled with growing ecological concerns such as climate change and resource depletion, drives demand for more sustainable manufacturing solutions. Companies that adopt sustainable manufacturing practices can capitalize on this trend by aligning their operations with environmental goals, reducing carbon emissions, minimizing waste generation, and conserving natural resources. For example, a company may invest in renewable energy sources, implement energy-efficient technologies, or optimize supply chain processes to reduce environmental impact. By embracing sustainability , companies not only meet regulatory requirements but also enhance their brand reputation, attract environmentally conscious consumers, and unlock new market opportunities. 

INCREASING USE OF SUSTAINABLE AND ECO-FRIENDLY MATERIALS IN ADVANCED TECHNOLOGIES 

Sustainability and utilization of environmentally friendly materials stand out as significant trends in advanced technologies such as digital twins, 3D printing , and so on. As various industries aim to harmonize technological progress with ecological consciousness, embracing more environmentally sustainable approaches within 3D printing is anticipated to gain momentum and foster expansion. Materials used in 3D printing are as important as printers. The most used material for 3D printing is polymer, though metals, paper, and organic tissues can also be used. Developing new materials and making them available for 3D printing is expected to increase the adoption of industrial 3D printing globally. Other materials used in this process are thermoplastics, photopolymers, ceramics, platinum, gold, sterling silver, precious-plated metals, strong and flexible plastics, frosted detail plastics, acrylic plastics, metallic plastics, brass, bronze, steel, full-color sandstone, porcelain, castable wax, elastoplastic, and aluminum. These newly developed materials have increased the adoption of 3D printing technologies in various end use industries. 

RAPID INDUSTRIALIZATION, ECONOMIC GROWTH, AND ECOLOGICAL CONCERNS 

Rapid industrialization, economic growth, and ecological concerns collectively create an opportunistic environment for the sustainable manufacturing market. As countries undergo rapid industrialization and economic expansion, there is a heightened awareness of the environmental impacts associated with traditional manufacturing practices. This awareness, coupled with growing ecological concerns such as climate change and resource depletion, drives demand for more sustainable manufacturing solutions. Companies that adopt sustainable manufacturing practices can capitalize on this trend by aligning their operations with environmental goals, reducing carbon emissions, minimizing waste generation, and conserving natural resources. For example, a company may invest in renewable energy sources, implement energy-efficient technologies, or optimize supply chain processes to reduce environmental impact. By embracing sustainability , companies not only meet regulatory requirements but also enhance their brand reputation, attract environmentally conscious consumers, and unlock new market opportunities. Overall, the convergence of rapid industrialization, economic growth, and ecological concern creates a favorable environment for the expansion of the sustainable manufacturing market, driving innovation and fostering long-term environmental and economic sustainability. 

GLOBAL SHIFT TOWARDS CLEAN ENERGY 

As countries worldwide commit to reducing carbon emissions and embracing renewable energy sources, there is a burgeoning demand for sustainable manufacturing practices that align with environmental objectives. This shift not only drives market demand for components of clean energy technologies but also incentivizes companies to innovate in sustainable manufacturing processes, materials, and technologies. Advancements in areas such as additive manufacturing, robotics, and energy-efficient technologies enable manufacturers to reduce waste, minimize energy consumption, and enhance resource efficiency. Furthermore, the adoption of clean energy sources, coupled with sustainable manufacturing practices, offers cost savings for businesses in the long term while also ensuring compliance with increasingly stringent environmental regulations. Companies that proactively invest in sustainability can differentiate themselves in the marketplace, attract environmentally conscious consumers, and gain a competitive advantage, positioning themselves as leaders in the transition towards a low-carbon economy. 

To achieve the global net zero carbon emissions objectives by 2050, as projected by the International Energy Agency (IEA), substantial increases in renewable energy generation and electric vehicle adoption must be made by 2030. Specifically, the !EA indicates that the renewable share of power generation must rise from 30 to 60 percent, while the proportion of electric vehicles among global car sales must increase from 6 to 60 percent. Meeting these targets requires a significant escalation in global clean energy technology manufacturing. While countries have announced projects aimed at expanding manufacturing capacity to meet the 2030 targets for solar photovoltaics (PV) and come close to those for electric vehicle (EV) batteries, there are still notable gaps to address. 

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Catherine Garrod is a leading voice in workplace inclusion and HR, renowned for her ability to make equity, diversity and inclusion feel practical and achievable. 

As the Founder of Compelling Culture and a keynote speaker represented by The Champions Speakers Agency, Catherine draws on her extensive career in HR and organisational development across sectors including media, FMCG, and telecoms. 

She is celebrated for guiding businesses to embed conscious inclusion into everyday decisions, helping them create positive, sustainable cultures where everyone can thrive.

In this interview, Catherine shares her insights on how organisations can build more inclusive workplaces – discussing practical strategies, overcoming fear of failure, and the future of purposeful work.

Q1: What are the key changes businesses must make to become more inclusive?

Catherine Garrod: “I think it’s about embedding inclusion into the way the organisation operates. It’s not just about people’s everyday behaviours when they’re interacting with colleagues, customers, or service users. 

“It’s also about looking at policies, processes, and systems, so that everything everyone is doing in their day-to-day work or interactions is already woven into what they’re doing. Inclusion should come by design, rather than be based on activities or programmes.

To check that it’s all working, the other big thing organisations need to do is use data. Whatever success looks like for that organisation, whether externally or internally, it’s important to look at the differences in experience for people from underrepresented groups compared to overrepresented groups. If there are big gaps, what then are the actions determined to close those gaps?”

Q2: What are your top tips for boosting equity, diversity, and inclusion in the workplace?

Catherine Garrod: “The first thing is to start with inclusion. If you break inclusion down to its fundamental definition, everyone wants to be valued, to be heard and to be involved. Don’t rush off and focus on diversity until you’ve really understood what inclusion looks like and whether people feel included.

Once you have a bit more of a basis for that and an understanding, absolutely look at the diversity. Look at the layers of your organisation, your marketing campaigns, your product development, whatever it is your organisation serves as its purpose, and understand who you’re appealing to, but also who you aren’t.

If you use something like an NPS score to measure customer service, don’t look at the total score. Look at how that score is defined, whether your part of the overrepresented population or the underrepresented population. Usually, the largest group lifts the score up and hides the experiences of the smaller group. So, start with inclusion, work out who you perhaps haven’t been including, and use data to understand what is and isn’t working.”

Q3: You led Sky to become the most inclusive employer in the UK. How can other businesses follow that example?

Catherine Garrod: “Listening is the biggest thing. I was there at a time when there were 24,000 employees. It was me and one other person leading that work, and I was a bit terrified. I thought, how can I, one person, authentically advocate for and push for change for all of these different peoples’ daily lived experiences and past lived experiences?

But what I learned really quickly was I wasn’t the only person who cared. There were lots of other people who cared – there were networks, and programmes and initiatives happening both on screen and internally for colleagues. So, go and find the other people who care. Listen, really learn, and seek external expertise too, whether that’s benchmarks or working with an organisation that can support you.

Ultimately, you want to create guidance for people that allows enough flexibility and freedom for them to be creative and to work in a way that makes sense for them. When you do that, people go much further than you ever believed was possible.”

Q4: What does the future of work and the workplace look like to you?

Catherine Garrod: “We are living through a fascinating period, and people in the future will look back and study us.

The organisations that will remain relevant in the future will be those that understand the different needs of different demographics across society, understand whether or not they are serving those needs, and put in place specific actions to address any gaps.

More and more, people want their work to have purpose and meaning. Whatever your job is, whatever department you’re in – no matter how senior or experienced you are – people increasingly want their work to have an impact on the world, whether that’s on people or the planet.

The world of inclusion and the world of environment and sustainability are becoming more intertwined. They’re core parts of people’s jobs and also side projects, things they care deeply about. If we fast-forward to the future and look back, leaders today need to think about what people will say about them one hundred years from now.”

Q5: What advice would you give to leaders who want to make their organisations more inclusive?

Catherine Garrod: “I think it’s about investing, being really serious about it. If you want your organisation to be consciously inclusive in how it operates, does business, or delivers a service, be deliberate and intentional. You need a strategy, measures of success, and good data to see what’s working and what isn’t, so you can recalibrate and try again.

The big thing that comes up in every organisation I speak to is fear, fear of getting it wrong or saying the wrong thing. One thing I really advocate for is having courage, vulnerability, and the willingness to experiment. Try things. If you get it wrong, take it on the chin, thank people for pointing it out, dust yourself off and keep going.

If people see that you’re committed, that you care, that you’re learning and noticing your mistakes and reflecting on them, you get forgiven really quickly.

Then it’s the ‘how’ – which comes back to the book. Help people understand how inclusion relates to the work they do. If you can get 20% of the people in your organisation doing that, the world would be 20% better.”

This exclusive interview with Catherine Garrod was conducted by Emma Tolhurst, Strategic Head of People at The Champions Speakers Agency.

The post “Inclusion by Design, Not by Chance” – Catherine Garrod on the Future of Work appeared first on European Business & Finance Magazine.

Roman Chernin,(pictured) Co-founder, Nebius  AI adoption across Europe is accelerating at a remarkable pace. As of early 2025, 13.5% of EU enterprises are now leveraging AI in their operations, marking a 5.5 percentage point rise since 2023. This shift signals more than just growth; it marks a turning point. We are entering a new era where AI implementation moves from experimental to essential, with reasoning models showing enhanced critical thinking capabilities and increasingly autonomous agentic systems.

Tackling the high costs of GPU compute remains a critical challenge for long-term sustainability. Organisations are increasingly focused on implementing energy-efficient solutions that not only optimise performance but significantly reduce utility expenses. As demand for compute intensifies, the AI infrastructure landscape calls for innovative approaches to managing increasingly complex workloads.

With growing emphasis on technological specialisation and evolving regulatory frameworks that demand counsel from AI-specialist attorneys, 2025 is shaping up to be a pivotal year for AI development in Europe. The industry is reimagining what innovation and accessibility look like, paving the way for breakthrough applications that will impact businesses across multiple sectors.

AI personalisation for businesses

The future of AI in enterprises lies in personalisation. No longer will a generic approach suffice – businesses are moving towards custom-built AI systems that harness proprietary data for targeted, industry-specific intelligence. This shift is driving the transition from small-scale, experimental AI to fully integrated, high-impact solutions that deliver measurable efficiency gains.

To support these bespoke systems, the demand for powerful GPUs and high-performance computing (HPC) clusters will rise significantly. Meeting this demand requires not only cutting-edge hardware but also the development of more efficient data centres that can handle these increasingly complex AI models without compromising on performance or sustainability.

Bridging the compute divide 

While major enterprises and large AI research labs often secure the lion’s share of the latest high-performance computing resources, smaller players such as startups, independent researchers, and universities still face steep barriers to access. This growing divide is creating an opportunity for specialised providers to fill the gap. Companies like Nebius are addressing this challenge by offering flexible, affordable access ranging from on-demand GPU rentals to dedicated, high-performance clusters. By making AI infrastructure more accessible, this enables innovation breakthroughs to emerge from all corners of the research and development ecosystem.  

Sustainability as a growing priority for Europe  

AI’s rapid advancement comes with a hidden cost: soaring energy demands. As models become more sophisticated, they require vast computational power, putting pressure on energy grids and raising concerns about long-term sustainability.

To tackle this challenge, businesses are turning to renewable energy sources, deploying advanced cooling techniques, and refining model architectures to improve efficiency. 

With energy consumption now a critical factor in both cost and compliance, 2025 is set to drive innovation in low-power chips, eco-friendly data centres, and AI models designed to do more with less. In Europe’s AI future, sustainability isn’t just an ambition – it’s a necessity.

The EU AI Act

The EU AI Act is set to become a defining piece of legislation for the AI landscape in 2025, introducing a tiered, risk-based framework for how AI systems are regulated across the bloc. Companies will be required to comply with stricter obligations depending on the risk classification of their systems – ranging from transparency requirements for generative AI models to rigorous testing, documentation, and human oversight for high-risk applications. 

This means organisations operating in sectors like healthcare, finance and critical infrastructure must invest in governance frameworks, explainability tools and robust audit trails.

The shift to autonomy 

The next wave of AI is shifting from assistance to action. Autonomous agents are emerging, capable of handling complex, multi-step tasks with minimal human input. Entire workflows and business operations will be automated, moving beyond prompt engineering and model tuning.

Fuelling this evolution are specialised AI chips, designed to outperform general-purpose hardware with faster, more efficient, and cost-effective performance. As a result, advanced AI will become more scalable and accessible, not just for enterprises, but for businesses of all sizes and their customers.

The rise of data ownership 

With AI permeating every sector, the legal landscape is set for transformation. Stricter regulations will emerge surrounding data ownership, licensing, and privacy. These rules will focus on ensuring greater transparency and accountability in how data is accessed and used, with clear guidelines outlining who controls it and how it should be managed across different parties. As legal scrutiny intensifies, businesses will need to navigate a more complex regulatory environment, driving innovation in compliance and ethical data handling.

Open-source video models as a creative revolution 

The democratisation of advanced video creation is on the horizon, driven by open-source video generation tools. By making high-quality video production accessible to all, these tools will put powerful capabilities in the hands of creators, startups, and storytellers around the world. Over the next few years, we’ll witness significant breakthroughs in real-time, interactive, and personalised video generation. This shift will redefine marketing, offering brands entirely new ways to engage with audiences. 

A year of accelerated AI 

This year, AI’s evolution is rapidly accelerating, driven by enterprise innovation and evolving regulatory landscapes. Compute access is expanding, AI autonomy is surging, and open-source video generation is unlocking new creative frontiers. Specialised hardware is streamlining large-scale AI adoption. Organisations that strategically adapt to these shifts – investing in tailored AI solutions, sustainable infrastructure, and regulatory compliance – will lead the next wave of technological advancement.

This convergence of forces marks 2025 as a pivotal year, shaping the future of AI. Given these developments, what practical steps will your organisation take to integrate and leverage AI effectively in the coming years?

The post The European AI revolution: Trends shaping 2025 and beyond appeared first on European Business & Finance Magazine.

By John Lynch (pictured), Director, Kiteworks

Ensuring compliance with the Network and Information Systems Directive (NIS2) is essential for IT, risk, and compliance professionals in any company that does business in the European Union. And for good reason. Demonstrating NIS2 compliance not only helps to avoid fines and penalties but also builds customer trust and showcases the company’s commitment to maintaining high cybersecurity standards.

But what is the NIS2 Directive? And what are the key benefits of compliance, risks of non-compliance and actionable best practices for businesses?

What is it?

The Network and Information Systems Directive (NIS2) is a comprehensive regulatory framework aimed at enhancing cybersecurity across the European Union. This directive focuses on bolstering the overall security and resilience of network and information systems utilised by essential services and digital service providers. The directive plays a vital role in safeguarding critical infrastructure, such as energy, transport, banking, and healthcare sectors, along with ensuring the integrity and availability of crucial services that both businesses and citizens rely on daily.

Demonstrating compliance with the NIS2 Directive is vital for maintaining seamless operations and avoiding potential disruptions that could affect service delivery and business continuity.

Benefits of compliance

NIS2 compliance offers numerous benefits for businesses of all sizes. NIS2 compliance enables companies to significantly enhance their cybersecurity posture, safeguarding sensitive data from cyber threats. Compliance also fosters customer trust, as clients are reassured that their information is secure. In fact, meeting NIS2 compliance can open up new business opportunities, as compliance is often a prerequisite for partnerships and contracts.

Consequences of non-compliance

Non-compliance with the NIS2 Directive poses significant risks. Failure to adhere to NIS2 compliance requirements and guidelines can leave organisations ill-prepared for cyberattacks, making them vulnerable to severe disruptions in their operations. Additionally, non-compliance can result in substantial fines and penalties. In the event of a data breach, businesses could face severe financial penalties, costly litigation, and irreversible damage to their reputation. The loss of customer trust due to inadequate cybersecurity measures could further undermine the business’s market position and future profitability. 

Compliance best practices

Demonstrating NIS 2 compliance can be daunting, especially with the ever-evolving landscape of cybersecurity threats. Yet, with the need to protect critical infrastructure and sensitive data more urgent than ever, adhering to the NIS 2 Directive is not just a regulatory requirement but a crucial business imperative. The following are practical steps to ensure adherence to NIS2 compliance requirements:

• Conduct a Comprehensive Risk Assessment: A thorough risk assessment is the foundation of NIS2 compliance. Identify potential threats and vulnerabilities in network and information systems. Evaluate the likelihood and impact of these risks to prioritise mitigation efforts. 
• Implement Strong Access Controls: Access controls are critical to protecting sensitive information and systems. Implement multi-factor authentication (MFA) and role-based access controls (RBAC) to ensure that only authorised personnel have access to critical systems and data. 
• Develop and Maintain an Incident Response Plan: An effective incident response plan (IRP) is essential for swiftly addressing security incidents and minimising their impact. An IRP should include clear procedures for detecting, reporting, and responding to incidents. 
• Ensure Continuous Monitoring and Detection: Continuous monitoring of network and information systems is crucial for early detection of potential security threats. Implement advanced monitoring tools and techniques, such as intrusion detection systems (IDS) and security information and event management (SIEM) solutions, to identify and respond to threats in real-time.
• Provide Regular Employee Training: Employee awareness and training are vital components of NIS2 compliance. Conduct regular security awareness training sessions to educate employees about cybersecurity best practices, such as recognising phishing attempts and secure handling of sensitive data. 
• Establish Clear Communication Channels: Clear and effective communication is essential for coordinating responses to security incidents and ensuring compliance. Ensure that all stakeholders understand their roles and responsibilities in the event of an incident.
• Regularly Review and Update Policies and Procedures: Policies and procedures form the backbone of NIS2 compliance efforts. Regularly review and update them to ensure they remain aligned with the latest regulatory requirements and best practices.
• Collaborate with External Experts: Engaging with external cybersecurity experts can provide valuable insights and support for your compliance efforts. Consider consulting with specialists to assess current security posture, identify gaps, and recommend improvements.
• Invest in Advanced Cybersecurity Technologies: Utilising advanced cybersecurity technologies is crucial for defending against sophisticated threats. Deploy solutions like next-generation firewalls, endpoint detection and response (EDR) tools, and encryption to safeguard the organisation’s network and data.
• Secure the Supply Chain: The security of the supply chain directly impacts an organisation’s overall security posture. Conduct thorough assessments of your suppliers and third-party vendors to ensure they adhere to robust cybersecurity practices.
• Conduct Regular Penetration Testing: Penetration testing is an effective way to identify vulnerabilities in systems before malicious actors can exploit them. Perform regular penetration tests to assess the effectiveness of security controls and uncover potential weaknesses. Use the findings to enhance security measures and ensure they align with the NIS2 Directive requirements.
• Integrate Threat Intelligence: Incorporating threat intelligence into cybersecurity strategy helps the business stay informed about emerging threats and vulnerabilities. Utilise threat intelligence feeds and platforms to gather real-time information on potential risks Integrate this intelligence into monitoring and response efforts to proactively address threats and enhance your NIS2 compliance.

A strategic advantage

Demonstrating NIS2 compliance is not only a regulatory requirement but also a strategic advantage. By following the best practices outlined above, businesses can ensure they meet the NIS2 Directive’s obligations, avoid penalties, and build trust with customers. Regular risk assessments, strong access controls, effective incident response plans, continuous monitoring, employee training, clear communication, periodic policy reviews, and collaboration with experts are all critical components of a robust NIS2 compliance strategy. Solutions such as Kiteworks’ Private Content Network can be instrumental in protecting and managing content communications while providing transparent visibility to help businesses demonstrate NIS 2 compliance.

The post NIS 2 Compliance Best Practices: Key Recommendations for Businesses appeared first on European Business & Finance Magazine.

In a move that could reshape the cryptocurrency landscape, Kraken, one of the world’s largest and most respected digital asset exchanges, has unveiled an ambitious new institutional-focused division aimed at tapping into the surging demand for regulated crypto investment products, particularly Bitcoin exchange-traded funds (ETFs).

The launch of this dedicated institutional arm, aptly named Kraken Digital Asset Services, marks a significant milestone for the San Francisco-based company, signaling its intent to solidify its position as a trusted gateway for institutional capital entering the burgeoning digital asset market.

“The institutionalization of crypto is well underway, and our new division is laser-focused on providing the products and services required for institutions to confidently and securely invest in this emerging asset class,” said Jesse Powell, co-founder and CEO of Kraken, in a statement that underscores the company’s strategic pivot towards the institutional segment.

At the core of Kraken’s institutional offering is a suite of robust trading and custody solutions tailored to meet the rigorous compliance and risk management requirements of institutional investors, including hedge funds, asset managers, and pension funds. This comprehensive suite includes sophisticated execution tools, robust custody infrastructure, and deep liquidity pools, all underpinned by Kraken’s unwavering commitment to security and regulatory compliance.

However, the centerpiece of Kraken’s institutional strategy is its ambitious foray into the burgeoning world of Bitcoin ETFs. As regulatory hurdles are gradually dismantled and investor appetite for these regulated crypto investment vehicles continues to soar, Kraken Digital Asset Services is positioning itself as a leading provider of secure and compliant infrastructure for ETF issuers and market makers.

“We recognize the immense potential of Bitcoin ETFs as a catalyst for mainstream crypto adoption,” said Jeremy Welch, Kraken’s Chief Product Officer, and the driving force behind the company’s institutional push. “By offering a robust and regulated ecosystem for ETF issuers and market makers, we aim to bridge the gap between traditional finance and the digital asset space, fostering greater accessibility and transparency for institutional investors.”

Kraken’s institutional ambitions extend beyond the realm of ETFs, encompassing a broad range of products and services tailored to the evolving needs of institutional clients. This includes over-the-counter (OTC) trading desks, prime brokerage services, and sophisticated portfolio management tools, all designed to provide institutional investors with a seamless and secure gateway into the world of digital assets.

“We are not simply replicating traditional financial services in the crypto space,” Welch added. “Our goal is to leverage the inherent strengths of blockchain technology to create innovative solutions that address the unique challenges and opportunities presented by this asset class.”

Kraken’s institutional push comes at a pivotal moment for the crypto industry, as mainstream financial institutions increasingly embrace digital assets as a legitimate asset class. This shift has been fueled by a confluence of factors, including growing regulatory clarity, institutional adoption of blockchain technology, and the widespread recognition of cryptocurrencies as a potential hedge against inflation and currency debasement.

“The arrival of institutional players is a watershed moment for the crypto industry,” said Amber Ghadimi, founder of AllianceBridge, a crypto investment firm. “Kraken’s institutional offering not only provides the necessary infrastructure for these investors to enter the market confidently but also lends further credibility to the asset class as a whole.”

Underpinning Kraken’s institutional ambitions is the company’s unwavering commitment to regulatory compliance and operational resilience. As one of the few crypto exchanges to hold multiple regulatory licenses across various jurisdictions, Kraken has consistently demonstrated its ability to navigate the complex and evolving regulatory landscape surrounding digital assets.

“Compliance is not just a box-ticking exercise for us; it’s a core pillar of our business,” said Dave Ripley, Kraken’s Chief Compliance Officer. “Our institutional clients can rest assured that their investments are backed by robust risk management frameworks and a deep understanding of the regulatory requirements governing this space.”

Kraken’s institutional push is also bolstered by a series of strategic partnerships and acquisitions aimed at enhancing its product offerings and expanding its global footprint. Most notably, the company’s recent acquisition of Crypto Facilities, a regulated crypto derivatives trading platform, has positioned Kraken as a leading player in the rapidly growing crypto derivatives market.

“Our acquisition of Crypto Facilities was a strategic move to provide our institutional clients with access to a regulated and liquid derivatives marketplace,” said Powell. “This is just the beginning of our efforts to build a comprehensive ecosystem that caters to the diverse needs of institutional investors.”

As the crypto industry continues its rapid evolution, Kraken’s institutional push represents a pivotal moment in the mainstreaming of digital assets. By providing a robust and regulated infrastructure for institutional capital to enter the market, the company is not only positioning itself for long-term growth but also contributing to the broader adoption and legitimization of cryptocurrencies as a viable asset class.

“The influx of institutional capital will undoubtedly shape the future trajectory of the crypto market,” said Ghadimi. “Kraken’s institutional offerings have the potential to catalyze this transformation, ushering in a new era of maturity and stability for the entire digital asset ecosystem.”

As institutional investors continue to navigate the complexities of the crypto market, Kraken’s institutional arm promises to be a trusted guide, bridging the gap between traditional finance and the cutting-edge world of digital assets. With a steadfast commitment to regulatory compliance, operational excellence, and innovative product development, Kraken is poised to play a pivotal role in shaping the future of institutional investment in cryptocurrencies.

The post Kraken Sets Sights on Institutional Investors with New Crypto Trading Arm appeared first on European Business & Finance Magazine.

The World Economic Forum will convene heads of state, ministers, business leaders, philanthropy and civil society to advance climate action at the 28th Conference of the Parties of the UNFCCC (COP28) at the Expo City Dubai, in Dubai, United Arab Emirates. The Forum’s focus at COP28 is to address priority action areas including industry decarbonization and net zero, energy transition, food, nature and innovative finance.

“We have to take a holistic approach to address the environment crisis, with people at the heart of the agenda, focusing on restoring and protecting nature ecosystems, strengthening community resilience in the face of water stresses and extreme temperatures, while stopping the pollution of our land, sea and water,” said Gim Huay Neo, Managing Director, World Economic Forum. “Fostering a sense of inter-dependence, mutual trust and support as well as active collaboration between governments, the private sector, philanthropy, civil society and communities is needed to build a more harmonious relationship among communities and with the planet. COP28 is an opportunity for the World Economic Forum to provide a platform for multistakeholders to take stock on progress, enhance partnership efforts and explore new ideas and solutions together to safeguard our global commons.”

The discussions in Dubai will build on outcomes from the Forum’s Sustainable Development Impact Meetings 2023, which reflected on progress made on the Sustainable Development Goals (SDGs) and created momentum in addressing the climate and nature crises and advancing an inclusive energy transition.

As part of the COP28 programme, the Forum will hold several sessions aligned to the meeting’s thematic areas. Most of the sessions will take place at the COP28 Blue Zone, which is accessible to UNFCCC-accredited media.

Insights and initiatives
The following Forum announcements and publications will be released at COP28.

• 22 Nov.: Net Zero Industry Tracker 2023
• 22 Nov.: Financing Energy Transition Projects with Industrial Clusters in Europe
• 26 Nov.: Biodiversity Credits: Demand Analysis and Market Outlook
• 27 Nov.: Biodiversity Credits: A Guide to Support Effective Use
• 29 Nov.: Launch of Scope 3 Action Plan from the Alliance of CEO Climate Leaders
• 29 Nov.: Navigating Article 6: Opportunities for the Middle East and North Africa
• 30 Nov.: Grassroots to Boardrooms:Social Innovation Partnerships for Climate Adaptation
• 30 Nov.: Catalysing Climate Action in Asia: Unlocking the Power of Philanthropic-Private-Public Partnerships
• 30 Nov.: Policy Action to Mobilize Climate Finance and Market Responses
• 1 Dec.: Taking Stock of Global Business Efforts on Adaptation
• 4 Dec.: Joint Communiqué: CEOs from the Leaders for a Sustainable MENA Sign Joint Letter to Pledging Net Zero by 2050 and to Reduce 200MT CO₂ Emissions by 2030
• 4 Dec.: Roadmap for Enabling Measures for Green Hydrogen in the MENA Region
• 4 Dec.: Fuelling the Future of Shipping: Key Barriers to Scaling Zero-Emission Fuel Supply
• 5 Dec.: Circularity in the Built Environment: Maximizing CO₂ Abatement and Business Opportunities
• 5 Dec.: Using a People-positive Approach to Accelerate the Scale-up of Clean Power: A C-Suite Guide for Community Engagement

Find more about World Economic Forum insight publications here

The post World Economic Forum to Accelerate Multistakeholder Climate Action at COP28 appeared first on European Business & Finance Magazine.

The meteoric rise of generative artificial intelligence (AI) has been extraordinary. It is easy to see why. While traditional AI is programmed by data scientists to perform one specific task, generative AI has democratised the technology like never before. By leveraging foundation models such as large language models (LLMs), it can fulfil a far wider range of tasks across a spectrum of business and creative functions.By Hans Petter Dalen-IBM EMEA AI Governance Platform . 

 At the same time, generative AI has prompted legitimate questions about transparency, data privacy, security, and governance. Business leaders who already are, will soon, or are considering leveraging the competitive capabilities of generative AI must now navigate the evolving regulatory landscape, the need for core guiding principles for AI usage – including the importance of human oversight – and the role data will play in a wider conversation about the technology.  

 The regulatory landscape    

 The EU AI Act is currently on course to become the world’s first comprehensive AI legal framework. First proposed in February 2020, it was drafted with a ‘risk-based’ approach to balance innovation with responsibility and trust. Now in the final stages of negotiation, the EU AI Act focuses on high-risk uses of AI and the importance of high-quality data sets for training AI models, transparency of data usage, and AI having explainable outcomes for those high-risk uses. This risk-based approach is significant because AI regulation needs to be flexible and evolve as technology does. Different industries and companies will have different AI use cases and associated risks – to avoid stifling innovation, blanket regulation should not be applied to all generative AI.  

 As governments worldwide consider their own AI rulebooks, at IBM we believe that responsible AI regulation should be based on three core principles.  

 The first is the need to regulate AI risk, not algorithms. This is reflective of the ‘risk-based’ approach currently being employed by the EU and recognises that not all AI carries the same level of risk. As a result, regulation should address the context that AI is being deployed, ensuring that high-risk uses are regulated more closely.  

 The second principle is accountability. Governments have a significant role to play, but it is also vital that AI creators and deployers are held accountable for the context in which they develop and deploy the technology. This will be essential in preventing organisations claiming immunity in cases related to discrimination, bias and fraudulent activity.  

 Third, we should not create a licensing regime for AI, which would hinder open innovation and risks creating a form of regulatory capture. We instead are advocates for a vibrant, open AI ecosystem that promotes competition, skilling and security and will help ensure that AI models are shaped by diverse and inclusive voices. Together, these principles would encourage the right balance between innovation and accountability, ensuring that AI can flourish in a transparent, open, and fair environment. 

 The importance of human oversight   

  Another important consideration for business leaders will be the need to create an effective AI governance strategy based on transparency and fairness. Any responsible governance strategy will have a significant amount of human oversight. Generative AI, like traditional AI, is organic. It learns from its users and can ‘drift’ or have what are known as ‘hallucinations,’ when an LLM generates false information. Failure to correct errors results in AI learning from inaccurate data which becomes further ingrained in its model.   

  It is therefore vital that suppliers of foundation models are transparent about their model, so companies deploying the technology can explain the outcomes – a critical step to ensure the trusted use of generative AI.  

 IBM’s watsonx.goverance, expected to launch by the end of the year, has this principle at its core. As an end-to-end toolkit encompassing both data and AI governance to enable responsible, transparent and explainable AI workflows. It will allow organisations to direct, manage and monitor AI activities, and strengthens the ability to mitigate risk, manage regulatory requirements and address ethical concerns through software automation. As AI becomes further embedded into daily workflows, this proactive governance will be essential for driving responsible decisions across both private and public sectors.   

 Failure to monitor incorrect outcomes is not just a matter of regulatory compliance, it has far wider financial and reputational risks for a business. There are some exciting real use cases for sectors such as insurance, banking and mortgage lenders – but inaccurate outcomes in these cases could have highly detrimental impacts on customers. Developing a governance strategy underpinned by human oversight and transparency enables businesses to avoid these risks, and business leaders should start to train and educate their workforce in these areas now to prepare for generative AI adoption. 

 Data, data, data   

 As the policy landscape evolves, business leaders are faced with the dual task of harnessing the benefits of generative AI to remain competitive whilst protecting their organisations from the financial, reputational, and regulatory risks that ungoverned use of generative AI can bring.  

 Business leaders face several challenges on generative AI, and one of the biggest questions is about its commercial viability. Business leaders across all sectors have displayed huge enthusiasm for the technology, but actual adoption within organisations requires adequate preparation and proper investment first.  

 The technology community is already exploring ways to accelerate this process. We are seeing a vibrant community of developers creating foundation models, pre-training them, and open sourcing them. In time, this collaborative approach could accelerate adoption and drive-up ROI for businesses.   

 The next step for regulation   

Generative AI and the regulatory landscape surrounding it will continue to evolve in unison. Business leaders must keep pace with the developing regulatory landscape and, as the EU AI Act is on course to do, we must take a risk-based approach to AI and ensure governance at every level. Together, these steps will enable companies to deploy trusted, responsible, and accountable AI throughout the entire AI lifecycle, allowing businesses and society to reap the benefits of trustworthy AI.   

The post Training, Trust and Transparency: Compliance in the Generative AI Era  appeared first on European Business & Finance Magazine.