ECON draft report on impact of AI

The European Parliament's Committee on Economic and Monetary Affairs (ECON) has released a draft report (dated 14 May) and motion for a European Parliament resolution on the impact of artificial intelligence (AI) on the financial sector. The report highlights the broad adoption of AI and its benefits across the EU financial services sector, including in fraud detection, anti-money laundering and personalised financial advice, among other areas. While acknowledging risks with AI-usage related to data quality and cybersecurity, ECON is of the view that these are already addressed through multiple pieces of sectoral legislation at both national and EU level, including the EU AI Act. With concerns of regulatory overlaps and legal uncertainties—which can limit the use of AI and complicate compliance for financial institutions— ECON advocates for responsible use of AI instead of new restrictive legislation. The motion for a resolution calls on the European Commission to: (i) provide clear guidance on how existing financial regulations apply to AI, ensuring consistent definitions and a simplified regulatory framework to avoid duplicative requirements; (ii) refrain from introducing new sector-specific AI regulation that can add complexity and uncertainty to already established sectoral rules, potentially creating barriers in cross-border markets; and (iii) support industry measures to enhance the understanding and responsible use of AI and provide clearer guidance with regard to the EU AI Act's requirements for financial institutions to comply with AI literacy requirements.

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