EP resolution on impact of AI on the financial sector

The European Parliament (EP) has adopted a resolution on the impact of AI on the financial sector. This follows the final report published by the EP's Committee on Economic and Monetary Affairs (ECON) earlier in November. The press release confirms that the resolution highlights AI's potential benefits to the financial sector, including through fraud detection, personalised advice, transaction monitoring and environmental, social and governance (ESG) data analysis. However, it also warns of risks such as data bias, model opacity, cybersecurity threats and over-reliance on major tech providers. MEPs call for human oversight, robust data governance and updates to supervisory tools — emphasising that no new legislation is needed; instead, existing rules should be clarified and streamlined to foster innovation without compromising consumer protection or financial stability. The resolution urges the European Commission and supervisors to provide proportionate guidance and to enhance cross-border cooperation and support initiatives such as setting up AI-specific regulatory sandboxes, increasing AI literacy, researching AI's environmental impact, and reducing regulatory barriers for AI-based financial firms.

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