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: Unpacking Stablecoin Challenges for Financial Institutions

The stablecoin market is experiencing unprecedented growth, driven by emerging regulatory clarity, technological maturity, and rising global demand for a faster, more secure financial infrastructure. But with opportunity comes complexity, and a host of challenges that financial institutions need to address before they can unlock the promise of a more streamlined financial transaction ecosystem. These...

BLOG

12 Leading Vendors Operationalising AI & ML with Robust Data Pipelines

The transition of artificial intelligence and machine learning (ML) models from experimental sandboxes to production environments remains a persistent operational friction point. While quantitative researchers and data scientists can often demonstrate alpha in isolated backtesting environments, the institutionalisation of these models requires a level of data pipeline robustness, latency control and regulatory auditability that research...

EVENT

Buy AND Build: The Future of Capital Markets Technology

Buy AND Build: The Future of Capital Markets Technology London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

AI in Capital Markets Handbook 2026

AI adoption in capital markets has moved into a more disciplined phase. The priority is now controlled deployment: where AI can be used safely, where it can deliver measurable value, and how outputs can be governed, monitored and evidenced. The 2026 edition of the AI in Capital Markets Handbook examines how AI is being applied...