About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

EU Parliament Approves Landmark Artificial Intelligence Act

Subscribe to our newsletter

The EU Parliament has approved the Artificial Intelligence Act, marking the world’s first regulation of AI. The regulation establishes obligations for AI based on its potential risks and level of impact and is designed to ensure safety and compliance with fundamental rights, democracy, the rule of law and environmental sustainability, while boosting innovation.

The act needs to be formally endorsed by the European Council and will come into force 20 days after its publication in the Official Journal. It will be applicable 24 months later except for  bans on prohibited practices, which will apply six months after the regulation comes into force; codes of practice that will come in after nine months; general-purpose AI rules including governance that will come in after a year; and obligations for high-risk systems that will follow in three years.

The regulation covers all types of AI including generative AI and is, no doubt, being scrutinised by capital markets participants as they continue to extend their use of the technology – more on this coming soon.

The act sets out key measures including:

  • Safeguards on general purpose artificial intelligence
  • Limits on the use of biometric identification systems by law enforcement
  • Bans on social scoring and AI used to manipulate or exploit user vulnerabilities
  • Right of consumers to launch complaints and receive meaningful explanations

It also covers high-risk AI systems that are not specifically identified but are likely to include those used in capital markets. These systems must assess and reduce risks, maintain use logs, be transparent and accurate, and ensure human oversight. Citizens will have a right to submit complaints about AI systems and receive explanations about decisions based on high-risk AI systems that affect their rights.

To encourage innovation across the board, regulatory sandboxes and real-world testing will have to be established at the national level and made accessible to SMEs and start-ups to develop and train innovative AI before it goes to market.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Navigating a Complex World: Best Data Practices in Sanctions Screening

As rising geopolitical uncertainty prompts an intensification in the complexity and volume of global economic and financial sanctions, banks and financial institutions are faced with a daunting set of new compliance challenges. The risk of inadvertently engaging with sanctioned securities has never been higher and the penalties for doing so are harsh. Traditional sanctions screening...

BLOG

Experts Probe Data Management Best Practices for Regulatory Reporting: Webinar Preview

Compliance with regulators is getting harder for data professionals as economic volatility and geopolitical strains look set to reshape how global financial markets are overseen. As data professionals brace to take the brunt of the work needed to comply with these rapid and unpredictable changes, A-Team Group will host a webinar that will probe the...

EVENT

Data Management Summit New York City

Now in its 15th year the Data Management Summit NYC brings together the North American data management community to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...