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39 I L T A N E T . O R G in December of 2023. In the US, the National Institute of Standards and Technology, one of the first to set solid guidelines for blockchain at its boom, released its' AI Risk Management Framework in January of 2023. Recent joint statements from government agencies highlight the urgency for businesses to proactively evaluate Gen AI's impact on civil liberties, consumer protection, and equal opportunities. This call to action mirrors the challenges faced by blockchain technology three years ago at its boom, with both industries grappling with the information and understanding gaps between tech companies and legislators. Gen AI-wrapped or focused tech companies, like the blockchain/de-fi start- ups that popped up after sharing open-source information, are slow to put privacy or regulatory protocols in place at inception. Regulatory counsels and advisory boards are put in place. The first round saw leaders like the Global Blockchain Business Council and bespoke advocacy like Stand With Crypto. Now, they look like the Center for AI Safety and the AI Alliance, which boasts membership from AMD, Meta, and IBM leaders. Similarly, US regulations are developing from the inside out and the outside in, with Congress being the last to catch up. Individual states are leading in creating legislative policy and attempting to regulate Gen AI technology as the EU, Asia, and Latin America develop protocols. Conclusion Information shared here underscores the necessity for balancing technological advancements with ethical imperatives and regulatory compliance. While Gen AI holds the potential to revolutionize cultural institutions like the legal and financial sectors within our society, responsible and ethical implementation requires the integration of human oversight, prioritization of data privacy, and compliance with industry-wide regulatory standards. Only through such conscientious practices can the full potential of Gen AI be realized. Both legal and financial institutions must prioritize training Gen AI models on diverse datasets to mitigate biases and ensure equitable outcomes. Accountability is also necessary, not just on the regulatory level – companies must embrace accountability for Gen AI's mistakes, recognizing that these technologies are their responsibility. Committees focused on Gen AI and accountability can aid in this endeavor, ensuring a proactive approach to addressing errors and mitigating risks in Gen AI-powered AML systems. As Gen AI relies heavily on data analytics and processing, protecting customers' information becomes paramount. Legal professionals, firms, and regulatory entities must prioritize robust data privacy policies, developed with the guidance of legal counsel, to ensure compliance with regulatory frameworks and protect customers' sensitive data from unauthorized access or misuse. The ethical implications of leveraging Gen AI in combating financial fraud and money laundering necessitate a multidimensional approach that prioritizes ethical considerations, regulatory compliance, and the protection of consumer interests. By fostering a symbiotic relationship between technological innovation and moral imperatives, we can harness the transformative potential of Gen AI while upholding integrity, transparency, and trust in the evolutionary advancements of the financial and legal ecosystem. ILTA Nicoletta Kolpakov has nearly a decade of experience working on legislative and regulatory policy through her involvement with congressional campaigns, national think tanks, and more recently, blockchain, NFTs, and Gen AI. She is currently a J.D. candidate at New York Law School.

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