BFSI: Sector encompassing banking, financial services, insurance; provides financial products, transactions, risk management; crucial for economic stability, growth; evolving via fintech, digitalization, regulatory changes.
EU AI Act compliance begins February 2025, with early requirements like AI literacy and definitions of AI systems effective immediately. Organizations must educate personnel on AI risks and integrate literacy into governance frameworks. Key prohibitions include exploiting vulnerabilities and social scoring. Businesses should assess AI systems, ensure training, and stay updated on regulatory changes for compliance. Proactive approaches in governance may enhance trust and competitive positioning in the AI landscape.
EU AI Act needs risk-based approach: The EU should avoid a one-size-fits-all AI regulation, which risks stifling innovation due to overlapping enforcement and lack of risk/benefit analysis. A sector-specific approach is suggested to balance risks and benefits, streamline regulation, and enhance competitiveness, ensuring that future AI guidelines support innovation while safeguarding public interest.
PhaaS: Cybercrime model offering phishing tools, infrastructure, and support for attackers. Lowers barrier to entry, enables widespread phishing campaigns. Users rent services, growth in cyber threats.
GDPR, effective May 2018, reshapes data privacy globally, affecting U.S. businesses engaging with EU residents. It mandates strict data protection, enhancing transparency and customer control, thereby fostering trust. However, compliance poses challenges, especially for SMEs, due to regulatory complexity, resource constraints, and potential fines. Companies must implement robust data management and security, ensure user rights, and adjust operations to meet GDPR standards. Proactive compliance can enhance competitiveness and provide strategic advantages in a privacy-focused market.
CISOs face challenges in balancing business continuity with their security responsibilities, especially as cyber incidents evolve. Their role now includes overseeing risk management, ensuring quick recovery from cyber disruptions, and collaborating effectively with CIOs, who traditionally manage business continuity. A lack of clear ownership can complicate recovery efforts post-incident. Organizations increasingly prioritize cyber resilience and are adjusting budgets for business continuity programs. Effective strategies involve unified incident response, understanding business processes, and improving organizational maturity in continuity practices to prevent disruptions post-cyberattacks. Resilience planning requires a shift from conventional recovery to integrating robust security measures.
CIOs and CISOs Seek AI Cybersecurity Guardrails
As AI models proliferate, CIOs and CISOs aim to establish security measures to mitigate risks from unauthorized access, cyberattacks, and data leaks linked to AI deployment. Key questions include vetting AI for security, managing multiple models, and tracking unauthorized AI use within organizations.
EU enacts NIS2, CER, and CRA to enhance cybersecurity. NIS2 updates previous directives, imposing cybersecurity mandates on essential entities, effective January 2023. CER targets physical resilience in 11 sectors, starting January 2023. CRA mandates cybersecurity standards for digital products; effective December 2024, main provisions in December 2027. Non-compliance can lead to hefty fines. Businesses advised to comply with these regulations.
12 strategies for accelerating digital transformation:
https://www.cio.com/article/3846263/12-ways-to-accelerate-digital-transformation.html
EU withdrew proposed AI Liability Directive due to stakeholder disagreement and regulatory simplification demands; aimed to unify protection for AI-related harm. Shift in focus towards future regulatory approaches on AI liability expected.
https://www.twobirds.com/en/insights/2025/proposed-eu-ai-liability-rules-withdrawn
