Virtual Personalities and Smart Analytics in the Digital Environment: Legal and Applied Framework for Big Data and Financial Transaction

Abstract

The rapid progress of artificial intelligence (AI) has altered the very nature of the digital systems that ground today's legal and financial institutions. This study is cross-discipline research that constructs an integrated framework that connects digital identity, AI-based digital wallets, and information governance across a singular legal-technological approach. It considers the consequences of AI reshaping economic exchange, digital identity management, and communication and its mediation by autonomous virtual identities that can carry out actions characteristic of observable real-world social and economic experiences. The study uses a comparison of the regulatory mechanisms in Iraq, Europe, and the US context to convey the efficiency, transparency, security while in need of mitigating regulatory concerns about ownership, privacy, liability, and intellectual property. The findings concede that while virtual identities are devoid of any independent legal status, someone related to those identities is liable. Lastly, the research concludes by recommending Egypt establish a national comprehensive legal framework for AI and big data legislation that gives consideration to protection of data, transparency of algorithmic decision making, and ethical use. Ultimately, the study promotes a hybrid legal and technical regulatory approach to focusing on human values and innovative responsibility.