Artificial Intelligence experts in Dubai hold that the tool is formidable to combat financial crime. The experts also said have said balancing innovation with regulations for AI will become more efficient when it works on data-driven approaches.
Among those leading this discourse during the Virtual Asset Regulatory Authority (VARA) panel session held in Dubai include Sean McHugh, senior director of market assurance at VARA, Jehanzeb Awan, Founder & CEO of J. Awan & Partners, Dubai and Sep Alavi, general partner at White Star Capital, Dubai.
They emphasised that innovation drives progress, economic growth, and societal advancement. On the other hand, regulations are essential to protect consumers, maintain fair markets, and ensure ethical practices.
“For AI to improve and become more efficient it needs our data, this includes taking data across the world and channelling it across different spaces which runs on the blockchain, this creates a more efficient and secure layer of using data,” Sean McHugh, senior director of market assurance at VARA said.
He emphasised on the increasing significance of AI in ensuring security and compliance within the virtual asset industry, highlighting the crucial role of AI in combating financial crime.
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He explained how AI can be used to detect suspicious activity, prevent fraud, and protect consumers. “AI is a powerful tool for combating financial crime. From detecting deepfakes to monitoring transactions for suspicious activity, AI can significantly enhance our ability to protect consumers and maintain market integrity.”
McHugh emphasised the synergistic relationship between AI and blockchain, noting that blockchain can provide a decentralised and secure foundation for AI while AI can optimise data management and analysis on blockchain networks. “The intersection of AI and virtual assets offers a wealth of opportunities. By leveraging the strengths of both technologies, we can create innovative solutions that drive efficiency, enhance security, and promote transparency in the virtual asset space.”
On his part, Jehanzeb Awan, Founder & CEO of J. Awan & Partners, Dubai, echoed the need for balanced regulation to support the growth of AI-powered virtual assets. “By striking a balance between fostering innovation and protecting consumers, we can create a thriving ecosystem for AI-powered virtual assets,”
He stressed the various challenges and opportunities presented by the intersection of AI and virtual assets, stressing the need for tailored regulations that address the specific risks and benefits associated with different AI applications.
“A one-size-fits-all approach to regulation is not effective in the virtual asset space. We need to develop regulations that are proportionate to the risks involved and allow for experimentation and innovation,” Awan said.
Also, Sep Alavi, general partner at White Star Capital, Dubai, emphasised the role of AI in ensuring security and compliance within the virtual asset industry. “AI offers significant potential to enhance security and compliance.
However, it is crucial to recognise that AI should not replace human judgment. A well-rounded approach that combines AI with human expertise is essential to effectively address the unique challenges and opportunities presented by this rapidly evolving industry.
The session held by Expand North Star, organised by the Dubai World Trade Centre and hosted by the Dubai Chamber of Digital Economy attracted more than 1,800 startups and over 1,200 investors from 100 countries, with assets under management exceeding US$ 1 trillion.
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