The data quality problem (in the European Financial Data Space)

Abstract

Abstract By creating the European Financial Data Space (EFDS), the European Commission aims to foster the development of data-driven innovation in the financial sector. Artificial intelligence (AI) is the most notable innovation that could benefit from enhanced access to data through the EFDS. However, the current policy framework establishing the EFDS suffers from a major limitation—it neglects the question of data quality or whether the data shared in the EFDS will be fit for the purpose of the development of AI applications. The AI Act and General Data Protection Regulation could play a role in fostering data quality in this area, but the two frameworks are also unlikely to do that to a satisfactory extent. To address the data quality problem, this article proposes policymakers should develop a framework for data quality that encompasses both a conceptual and an organizational dimension aimed at promoting the free flow of high-quality data in the EFDS.