arXiv ·
Researchers introduce a new task for generating question-passage pairs to aid in developing regulatory question-answering (QA) systems. The ObliQA dataset, comprising 27,869 questions from Abu Dhabi Global Markets (ADGM) financial regulations, is presented. A baseline Regulatory Information Retrieval and Answer Generation (RIRAG) system is designed and evaluated using the RePASs metric.
KAUST ·
KAUST's Stochastic Numerics Research Group is developing methods for pricing European options. Their approach, detailed in an upcoming Journal of Computational Finance article, focuses on systematically tuning parameters to achieve accuracy while minimizing computational effort. The goal is to enable automated computation of fair prices for options contracts, similar to how insurance companies determine premiums. Why it matters: This research advances computational finance in the region, potentially improving risk management and investment strategies.
MBZUAI ·
ADGM and MBZUAI have signed an MoU to advance AI applications in financial regulatory compliance. The partnership will focus on developing regtech and suptech solutions, including an AI model to extract meaning from financial regulations. A key project is enhancing FSRA’s ‘Risk Analyser’ platform, which uses AI to provide insights on supervised firms. Why it matters: This collaboration signals a push towards AI-driven regulatory innovation in the UAE's financial sector, potentially improving efficiency and compliance.
arXiv ·
This paper introduces DaringFed, a novel dynamic Bayesian persuasion pricing mechanism for online federated learning (OFL) that addresses the challenge of two-sided incomplete information (TII) regarding resources. It formulates the interaction between the server and clients as a dynamic signaling and pricing allocation problem within a Bayesian persuasion game, demonstrating the existence of a unique Bayesian persuasion Nash equilibrium. Evaluations on real and synthetic datasets demonstrate that DaringFed optimizes accuracy and convergence speed and improves the server's utility.
arXiv ·
This paper introduces the AI Pentad model, comprising humans/organizations, algorithms, data, computing, and energy, as a framework for AI regulation. It also presents the CHARME²D Model to link the AI Pentad with regulatory enablers like registration, monitoring, and enforcement. The paper assesses AI regulatory efforts in the EU, China, UAE, UK, and US using the CHARME²D model, highlighting strengths and weaknesses.
TII ·
This commentary discusses the EU AI Act and its potential impact on AI regulation globally. It highlights the importance of balancing innovation with safety and security, particularly in sensitive sectors like healthcare. The author, Prof. Mérouane Debbah of TII, welcomes the EU's emphasis on transparency and the role of open-source models. Why it matters: The EU AI Act is likely to influence AI policy in the Middle East, prompting a need for regional alignment and consideration of its implications for research and development.
MBZUAI ·
Researchers at ETH Zurich have formalized models of the EMV payment protocol using the Tamarin model checker. They discovered flaws allowing attackers to bypass PIN requirements for high-value purchases on EMV cards like Mastercard and Visa. The team also collaborated with an EMV consortium member to verify the improved EMV Kernel C-8 protocol. Why it matters: This research highlights the importance of formal methods in identifying critical vulnerabilities in widely used payment systems, potentially impacting financial security for consumers in the GCC region and worldwide.
KAUST ·
Munther Dahleh, director at the MIT Institute for Data, Systems, and Society (IDSS), discussed his group's research on network systems at the KAUST 2018 Winter Enrichment Program. The research focuses on the fragility of large networked systems, like highway systems, in response to disruptions that may lead to catastrophic failures. Dahleh's team studies transportation networks, electrical grids, and financial markets to understand system interconnection in causing systemic risk. Why it matters: Understanding networked systems is crucial for building resilient infrastructure and mitigating risks in critical sectors across the GCC region.