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Regulate Impossible to Let Loose | ✉️ #63

Illustration of a person in a hoodie gesturing, with "MKDEV DISPATCH #63" and text "Regulate Impossible to Let Loose." Background features paper airplanes. Illustration of a person in a hoodie gesturing, with "MKDEV DISPATCH #63" and text "Regulate Impossible to Let Loose." Background features paper airplanes.

Hey! 👋

This week we had a podcast with gorgeous Katarina Pranjić from LexisNexis Risk Solution, one of the largest analytics companies in the world, helping companies collect and analyze mind-numbing databases to prevent potential crimes. Identity fraud, fake transactions, money laundering, lots of stuff.... Very interesting episode, but there's a lot of left behind the scenes. It turns out that by certain patterns of movement of masses of cash, it is possible to distinguish the nature of business, it helps to detect drug trafficking and illegal firearms trade. Apparently, the exchange of money for the delivery of cucumbers leaves a different financial trail than the delivery of weapons. And such companies have behavioral indicators assigned to each individual sub-actor (including private individuals, who are anonymized, of course). These indicators can be used to track suspicious and anomalous behavior that may signal that an account has been hacked or compromised. A primitive example would be if a sub-actor X suddenly made a purchase at a casino in China, even though he has never made a transaction outside of Germany in his life. And these various indicators for each sub-actor - a little more than 700.... Seven hundred! Of course, we immediately start grabbing our heads and screaming that the government is watching us, we are all under surveillance. There's a reason why this whole financial area is unrealistically regulated. So much so that regulation is at odds with innovation. It is simply impossible to create something unique, something new, and bring it to market quickly to test the idea. This unwieldy machine, like the biggest tanker in the world, needs tens of kilometers of braking distance just to turn 40 degrees...

And why do I say all of this? This was just an introduction to make you think and pay attention to the speed with which the artificial intelligence market is developing. And why is that so? Because no one is regulating it... There is complete chaos. Well.. There was. Until recently. Literally just now, the EU AI Act came into effect, which finally starts to introduce some rules that are very important. At least in terms of safety. Companies are obliged to provide safety training if the work of their employees is associated with certain hazards. This does not surprise anyone. So, according to this AI law, employees who work with AI should also undergo such training. In addition, if you simply use ChatGPT at work, your company should conduct AI literacy training for you. Intrigued? That's why Paul Larson and I are now developing a series of articles to explain the new rules in detail. Read it from the links below in this dispatch. We were surprised at first too. But then I thought that tight regulation in this area is necessary. Simply because of the dangers and damage that can be caused by the unscrupulous use of data generated by AI. But on the other hand... If we start to regulate it, will we hinder innovation? Regulate impossible to let loose - where would you put the comma? EU made the first move. More to come…

What We've Shared

And on the website there are two great new pieces by Paul Larsen, our Head of Data & AI:

What We've Discovered

The 64th mkdev dispatch will arrive on Friday, February 28th. See you next time!