By RASHAD ROLLE

Tribune News Editor

rrolle@tribunemedia.net

THE Bahamas will soon seat an expert committee to draft its first national policy on artificial intelligence, Attorney General Ryan Pinder said yesterday, warning that AI carries both great promise and serious risk.

“When it comes to the use of artificial intelligence you might hear arguments on all of this, AI can provide tremendous benefit for the industry or pose significant threats,” Mr Pinder told bankers at the Association of International Banks & Trust Companies - The Nassau Conference. He said the government will prepare “a comprehensive AI country policy” that will include “a true SWOT analysis of utilising AI in all elements of our country,” with the financial services industry as a priority.

Mr Pinder described AI as a double-edged sword, noting that it can streamline operations, improve risk management and enhance customer service, but also enable fraudsters, spread misinformation, compromise data security and even replace the investment analysis on which financial institutions rely.

Other countries have already moved to address these same challenges. The European Union last year enacted the world’s first comprehensive AI law, the AI Act, which classifies systems by risk level and imposes strict requirements on those deemed high-risk. Providers must show that their systems use reliable data, maintain proper documentation and allow for human oversight, while the most dangerous applications, such as social scoring, are banned outright.

In the United States, former President Joe Biden signed an executive order in October 2023 directing agencies to evaluate and monitor AI systems before and after deployment, with a focus on cybersecurity, civil rights and transparency. A follow-up White House memorandum in March 2024 imposed detailed governance and risk-management rules on federal use of the technology.

Britain has opted for a “pro-innovation” approach, placing AI oversight in the hands of existing regulators rather than creating a new agency. It has also established an AI Safety Institute, which the government intends to strengthen with new legislation to make developer safety commitments legally binding.

Jamaica earlier this year unveiled recommendations for a national AI policy, focusing on ethical use, privacy safeguards and the integration of AI in education and public services.