In today’s rapidly evolving landscape, clear and accurate financial communication is more critical than ever, especially with increasing regulatory demands around reporting. As companies navigate these complexities, the use of Artificial Intelligence (AI) in translation offers potential efficiencies but also introduces significant risks. These risks multiply when handling sensitive, non-public information like interim or quarterly reports. Regulatory bodies are paying close attention to how firms manage these new challenges. In this article, we look at how the Swedish regulatory body is reacting to the use of AI in the financial sector.
Regulatory Focus: Finansinspektionen (FI) on AI and Security
Finansinspektionen (FI), the Swedish Financial Supervisory Authority, has highlighted the importance of secure and reliable AI. In their report AI i den svenska finanssektorn (AI in the Swedish financial sector), FI notes that generative AI is being used widely, often without formally approved policies. This widespread adoption, without adequate controls, raises concerns.
The Risks of Using AI for Sensitive Financial Translation
FI emphasises the dangers of using AI tools for handling sensitive information. When translating non-public reports, such as quarterly financial statements before their official release, several key risks emerge:
• Information leakage: There are risks linked to information leaks and a lack of control over AI tools.
• Potential saving or analysis of content: Cloud-based AI tools, like public services, can potentially save or analyse the content being translated, leading to unintentional distribution.
• Lack of traceability: It can be challenging to demonstrate who has accessed the information and how it has been handled.
• Insufficient control: Using an AI tool that is not internal or secured according to a company’s IT policy can breach regulations regarding the handling of insider information.
FI’s guidelines for insider information are clear: such information, including quarterly reports before publication, must not be disseminated to unauthorised parties. Using inadequately secured AI translation tools for these documents poses a direct risk to compliance.
Finansinspektionen’s Recommendations for Companies
To mitigate the risks associated with using AI for translating sensitive reports and to avoid potential issues related to insider trading, FI implicitly encourages companies to adopt stringent measures. Based on the concerns raised, key recommendations include:
• Use secure, internal AI tools: Opt for internal, secure AI tools instead of public cloud services.
• Implement clear policies: Establish clear policies outlining how AI tools may be used when handling non-public information.
• Train personnel: Educate staff on what constitutes insider information and the proper procedures for using AI tools.
• Document and log use: Document and log all AI usage in connection with sensitive information.
Fluid Translation: Your Secure Partner for Financial Communication
Fluid Translation understands the critical importance of security and confidentiality when handling your sensitive financial and investor relations content. With decades of experience in translating complex financial, legal and technical texts for publicly traded companies and government agencies, we offer solutions designed to meet the highest standards of security and quality.
We provide translation carried out by subject experts, not by machines alone. While we utilise cutting-edge translation tools and technology, including AI-assisted workflows where appropriate, this is done within secure, controlled internal translation environments. Our approach, as demonstrated by our case studies, involves expert post-editing by professional linguists leveraging client-specific resources like term databases and translation memories. This avoids the risks associated with feeding sensitive data into public, potentially unsecured cloud AI services.
Our processes include:
• Expert translators: A hand-picked network of translators and writers with decades of experience in business, finance, technology and law. They have the expertise required for IR and financial translation.
• Quality assurance processes: Rigorous processes ensure consistent communication, correct tone and adherence to your specific terminology.
• Secure environment: Utilisation of internal, secure translation tools and platforms.
• Efficient workflow: We support tools such as InDesign, Sharepoint, ESEF, XHTML and XBRL, streamlining the translation process.
• Client collaboration: Tools like In-Country Review allow your internal experts to efficiently review and validate translations within our secure environment, ensuring accuracy and consistency with local market nuances.
By partnering with Fluid Translation, you gain access to a quality partner dedicated to professionalism, punctuality and integrity. We provide the expertise and secure processes needed to handle your most sensitive financial communications, ensuring they are accurate, compliant and effectively convey your message to a global audience, without exposing your non-public information to the risks of public AI tools.