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Taking AI Risks Seriously: A Proposal for the AI Act

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"... we propose applying the #risk categories to specific #ai #scenarios, rather than solely to fields of application, using a #riskassessment #model that integrates the #aia [#eu #aiact] with the risk approach arising from the Intergovernmental Panel on Climate Change (#ipcc) and related literature. This model enables the estimation of the magnitude of AI risk by considering the interaction between (a) risk determinants, (b) individual drivers of determinants, and (c) multiple risk types. We use large language models (#llms) as an example."

Central bank supervisory role: micro‑prudential supervision and regulation of ESG risks

This paper discusses the role of #centralbanks in #regulating and #supervising #esgrisks in the #banking sector. The authors review recent international and regional rules requiring banks to consider #esg factors in their #governance, and analyze the practices of #microprudential #supervisors in several jurisdictions.

Consumer Utility, Capital and Fair Profit Margins in Insurance

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"Observed #competitive market #profitmargins in #insurance have generally exceeded what is considered fair being the #capm adjustment for risky loss cashflows. This potential ‘missing link’ has attempted to be explained by either #risk, #capital or frictions that are unrecognised by the theory. It is proposed here that the missing link instead relates to the consumption of insurance services for which a fair profit margin arises under marginal utility principles."

Regulating AI at work: labour relations, automation, and algorithmic management

These papers examine the role of #collectivebargaining and #governmentpolicy in shaping strategies to deploy new #digital and #ai-based technologies at work. The authors argue that efforts to better #regulate the use of AI and #algorithms at work are likely to be most effective when underpinned by social dialogue and collective #labourrights. The articles suggest specific lessons for #unions and policymakers seeking to develop broader strategies to engage with AI and #digitalisation at work.