About a-team Marketing Services

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


Recorded Webinar: Proactive RegTech approaches to fighting financial crime

Financial crime is a global problem that costs the economy trillions of dollars a year, despite best efforts by financial services firms, regulators, and governments to stem the flow. As criminals become more sophisticated in how they commit financial crime, so too must capital markets participants working to challenge criminality and secure the global financial...


SmartStream Reference Data Services Provides Derivatives Data for EMIR Refit

SmartStream Reference Data Services (RDS) has released an enhanced derivatives data service providing in-depth insights into futures related transactions and playing into EMIR Refit reporting requirements. EMIR Refit is geared towards enhancing transparency and stability in the OTC derivatives trading market and is set to take effect in April for Europe and September for the...


Data Management Summit London

Now in its 14th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.


Regulatory Data Handbook 2023 – Eleventh Edition

Welcome to the eleventh edition of A-Team Group’s Regulatory Data Handbook, a popular publication that covers new regulations in capital markets, tracks regulatory change, and provides advice on the data, data management and implementation requirements of more than 30 regulations across UK, European, US and Asia-Pacific capital markets. This edition of the handbook includes new...