PM urges legal capacity boost for AI and Fintech
29 Jan 2025
Fintech is an area where legal expertise needs to be developed
The Prime Minister last night called for the building of Bahamian legal capacity in areas such as climate change and artificial intelligence (AI) while calling on this nation to fulfill its arbitration centre potential.
Philip Davis KC, identifying financial technology (Fintech) as another area where the country needs to develop legal expertise, told the opening of the University of the Bahamas Legal Week 2025 that the judicial system cannot allow the technology-driven reforms sparked by the COVID-19 pandemic “subside”.
“It is in addressing our biggest challenges that we will always find our biggest opportunities. So, innovation is not optional: It must come as naturally to us as breathing,” said Mr Davis.
“In many ways, we were forced to swiftly and aggressively adopt new technologies. Technologies supporting widespread digital recording, digital meetings, digital hearings, cloud-based storage and remote access were all rolled out at record speed. We must not let this momentum subside.”
Mr. Davis, who has spoken out about the effects of climate change on many occasions, highlighted the increasing need for legal guidance when dealing with agreements related to this topic. “As we take on climate change, we can anticipate opportunities in sustainability and environmental law,” he added.
“This also applies to areas like financial services where carbon offsetting, impact investment and compliance with environmental, social and governance standards will all require the guidance of bright, young legal minds. Of course, we cannot anticipate all the changes that the future holds, but we can equip ourselves with the timeless values that will prepare us for any change.”
Mr. Davis said the Bahamian financial services industry is expanding to include Fintech, and both regulators and firms will need more legal professionals.
“Meanwhile, in areas like financial services, we have huge opportunities in Fintech and emerging markets in Asia, as well as the UK market, where tax changes have opened the door for potential expansion. We must cultivate the necessary expertise in trusts and estate law, wealth management and tax law to take advantage of these opportunities to grow our economy,” said Mr. Davis.
The Bahamas has potential as a global arbitration centre
“Looking ahead, as the world continues to embrace blockchain and AI, we will need our legal minds to successfully navigate that change as well.” Mr. Davis also pointed to the arbitration reforms and their potential role in establishing the country as a “global arbitration centre”.
“We must also truly, and some may say ‘finally’, tap into our capacity to function as a global arbitration centre and hub for alternative dispute resolution. This is critical to expanding access to amenable resolutions for all parties involved in civil disputes without costly, lengthy court procedures,” said Mr. Davis.
“This is another emerging area that The Bahamas is keen to develop as we make a number of amendments to our arbitration legislation, adapt our framework to be consistent with UNCITRAL standards, appoint more professionals to the Permanent Court of Arbitration, and allocate more resources and spaces to accommodate arbitration and mediation hearings.”