Embracing AI in financial services: A targeted consultation by the EU
On 18 June 2024, the European Commission initiated a targeted consultation and a series of workshops to gather input from stakeholders on the application of artificial intelligence (AI) in finance, as the financial sector is increasingly adopting AI technology. These initiatives aim to explore use cases, benefits, barriers, risks, and the needs of stakeholders.
This move aligns with the upcoming AI Act, the world’s first comprehensive AI legislation, which will enter into force on 1 August 2024. The AI Act aims to ensure safety and fundamental rights, while promoting AI investment and innovation within the EU. To further support these objectives, the Commission introduced an AI innovation package in January 2024 to assist European startups and SMEs in developing trustworthy AI.
The AI Act complements existing financial regulations, ensuring transparency, market integrity, investor protection, and financial stability. It requires investment firms using AI, such as trading algorithms, to comply with the MIFID/R framework and the market abuse rulebook.
The consultation seeks input from financial services stakeholders, including companies and consumer associations, to inform the European Commission on AI's impact in the sector. The questionnaire includes:
- General questions on AI development
- Specific use cases in finance
- AI Act-related questions specific to the financial sector
Stakeholders are invited to respond to the consultation by 13 September 2024. The collected information will be anonymised, and a report on the findings will be published, highlighting key trends and issues.
This initiative aims to enhance the effective implementation of the AI Act and existing financial services regulations, without introducing redundant or innovation-stifling requirements.
The news release can be found here.
The consultation document can be accessed here and for further information here.
Our previous blog post on the AI Act can be found here.
